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Overview of the Texas Commission Lawsuit

The latest commission lawsuit in Texas has arrived and is taking a different approach by naming individual brokers, real estate teams, and local Realtor Associations as defendants. The QJ Team suit is distinct from other commission lawsuits, such as Moehrl, Sitzer/Burnett, March, Gibson, and Batton 2. The defendants in this case include large corporate brokerage firms like Keller Williams, Side, HomeServices of America, and Fathom Realty, but also real estate teams like The Loken Group and Hexagon Group, as well as individual broker Mark Anthony Dimas.

Details of the Lawsuit

Filed by plaintiffs QJ Team, LLC., a Texas-based homebuilder, and Five Points Holdings, LLC., a holding company headed by DS News founder Mark Hulme, the lawsuit accuses its 29 defendants of colluding to artificially inflate real estate agent commissions. The National Association of Realtors’ (NAR) Clear Cooperation policy is at the center of the plaintiffs’ complaint. This policy requires listing brokers to make a blanket offer of compensation to buyers’ brokers to list the property on the MLS.

Alleged Anticompetitive Effects

According to the complaint, the alleged conspiracy has had three “illogical, harmful, and anticompetitive effects”:

  1. Requiring sellers to pay overcharges for services provided by buyer brokers to the buyer.
  2. Maintaining, fixing, and stabilizing buyer broker compensation at levels that would not exist in a competitive market.
  3. Promoting steering and actions that hinder innovation and entry by new, lower-cost real estate brokerage service providers.

Class Action Status and Jury Trial

Like other commission lawsuits, this suit is seeking class action status, with a class definition of all persons who listed properties on an MLS in Texas using a listing agent or broker affiliated with one of the defendants and paid a buyer broker commission from Nov. 13, 2019, to the present. The plaintiffs are demanding a jury trial and damages, which have yet to be set.

Defendants’ Response

When HousingWire reached out to the defendants in the suit for comment, only Keller Williams and Compass, the parent company of Realty Austin, responded, stating that they did not wish to comment on the matter.


The Texas commission lawsuit is a unique case, as it names individual brokers, real estate teams, and local Realtor Associations as defendants. This approach may have significant implications for the real estate industry, especially if the plaintiffs are successful in their claims. With the potential for damages and a jury trial, this case is worth keeping an eye on for those in the industry.

Orginal article: Link To Article – provided by Kansas City Realtors