In the fervent pursuit of justice within the real estate industry, Top Agent Network (TAN) refuses to back down in its legal battle against the National Association of Realtors (NAR). The saga unfolds with twists and turns that showcase the resilience and determination of TAN in challenging the status quo.
The legal rollercoaster began when TAN’s antitrust lawsuit was dismissed with prejudice by a lower court, citing a failure to state a claim in the third amended complaint. Undeterred, TAN appealed this decision to the Ninth Circuit Court of Appeals, leading to a pivotal moment in August 2023. The appeals court overturned the lower court’s ruling, emphasizing the similarity of TAN’s allegations to those in a suit by The PLS.com that had been permitted to proceed.
The legal battle resumed in December 2023 when U.S. District Court Judge Vince Chhabria reopened the case in San Francisco. TAN’s motion for reconsideration was granted in July 2024, affirming the plaintiff’s allegations of antitrust injury.
Breaking headlines emerged as TAN filed its fourth amended complaint on a fateful Tuesday. In this latest iteration, NAR stood as the sole defendant following the voluntary dismissal of the San Francisco Association of Realtors. This strategic move aimed to focus the lawsuit on stopping NAR and its affiliates from allegedly stifling competition and dictating the marketing choices of families selling their homes.
The heart of the matter revolves around NAR’s Clear Cooperation Policy, which mandates listing properties on the MLS within 24 hours of marketing them. TAN argues passionately for the consumer’s right to choose whether or not to participate in MLS marketing, citing concerns about privacy, property value, and market competition.
The lawsuit delves deeper into the restrictive nature of the Clear Cooperation Policy, asserting that it limits sellers’ marketing options and curtails competition in the broker services market. TAN paints a vivid picture of how this policy disrupts the real estate landscape and inhibits agents from utilizing alternative marketing strategies.
An insightful examination of the policy’s purported intent versus its impact unfolds within the complaint. Despite NAR’s assertions about benefiting consumers through increased exposure on the MLS, TAN highlights the carve-out for office exclusives, known as “pocket listings,” that may favor larger brokerages and stifle smaller agents’ ability to serve their clients effectively.
Furthermore, TAN raises concerns about the policy’s role in exacerbating the nation’s low inventory crisis, recounting how off-MLS marketing can provide a lifeline for hesitant sellers and inject flexibility into the market. This scrutiny underscores TAN’s commitment to advocating for fair competition, consumer choice, and market innovation.
Amidst the legal intricacies and nuanced arguments, TAN’s demands remain resolute – a jury trial, treble damages, restitution, the termination of the Clear Cooperation Policy, and an injunction against its enforcement. With a trial set for November 2025, the unfolding legal drama promises to reshape the real estate landscape and uphold the principles of fairness and transparency in the industry.
