Nevada real estate firms hit with second commission lawsuit

A second home seller in Nevada has filed a lawsuit alleging that real estate industry players in the state have colluded to artificially inflate real estate agent commissions. The copycat commission lawsuit was filed on Friday in U.S. District Court in Las Vegas by Nevada home seller Angela Boykin. 

The complaint claims that the National Association of Realtors is the creator of this alleged conspiracy through its creation and enforcement of its Participation Rule. Under this rule, listing brokers are required to make a unilateral blanket offer of compensation to buyer’s brokers in order to list a property on a Realtor association affiliated multiple listing service. 

“In the absence of NAR’s Mandatory Offer of Compensation Rule, the expense of buyer broker commissions would be incurred by their clients (homebuyers),” the complaint states. “This would lead to competition among buyer brokers to offer lower commission rates. Consequently, the Mandatory Offer of Compensation Rule stifles price competition among buyer brokers because the actual party retaining the buyer broker—the homebuyer doesn’t negotiate or pay the commission for their broker.”

In addition to NAR, the suit also names The Agency, Chase International, Dickson Realty, Compass, eXp World Holdings, The Real Estate Guy, HomeSmart International, Huntington & Ellis, Douglas Elliman, Realty One Group, Redfin, BHH Affiliates, Urban New Realty, Nevada Realtors, Greater Las Vegas Association of Realtors, Greater Las Vegas Association of Realtors MLS, Elko County Realtors, Incline Village Realtors, Sierra Nevada Realtors, Northern Nevada Regional MLS, and Mesquite Real Estate Association as defendants. 

Like the other commission lawsuits, the Boykin suit is seeking class action status for anyone who listed a property on a MLS in Nevada using a listing agent affiliated with one of the brokerage defendants named in the suit and paid a buyer broker commission between Feb. 16, 2020, and the present. The plaintiff is also asking for damages, permanent injunction enjoining the defendants from requiring that sellers pay the buyer broker and a jury trial. 

The first commission lawsuit in Nevada was filed by Nathaniel Whaley in early January 2024. The complaint initially did not name any real estate brokerages as defendants, but an amended complaint filed later in January added 15 brokerages to the list of defendants.