What is the primary allegation in the Moehrl Action against Remax and other defendants?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
A number of putative class action complaints were filed against the National Association of Realtors ("NAR"), Anywhere Real Estate, Inc. (formerly Realogy Holdings Corp.), HomeServices of America, Inc. ("HSA"), RE/MAX, LLC and Keller Williams Realty, Inc ("Keller Williams"). The first was filed on March 6, 2019, by plaintiff Christopher Moehrl in the United States District Court for the Northern District of Illinois (the "Moehrl Action"). Similar actions have been filed in various federal courts. The complaints make substantially similar allegations and seek substantially similar relief. For convenience, all of these lawsuits are collectively referred to as the "Moehrl-related antitrust litigations." In the Moehrl Action, the plaintiffs allege that a NAR rule that requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, results in increased costs to sellers and is in violation of federal antitrust law. They further allege that certain defendants use their agreements with franchisees to require adherence to the NAR rule in violation of federal antitrust law. Amended complaints added allegations regarding buyer steering and non-disclosure of buyer-broker compensation to the buyer.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Moehrl Action, initiated on March 6, 2019, alleges violations of federal antitrust law. The plaintiffs in this case claim that a National Association of Realtors (NAR) rule mandates brokers to make blanket, non-negotiable offers of buyer broker compensation when listing a property, which results in increased costs to sellers.
The lawsuit further alleges that Remax and other defendants use their agreements with franchisees to enforce adherence to this NAR rule, thereby violating federal antitrust law. Amended complaints have expanded these allegations to include buyer steering and non-disclosure of buyer-broker compensation to the buyer.
It is important to note that Remax denies these allegations and has entered into a Settlement Term Sheet to resolve claims in the Moehrl Action. However, the settlement is not an admission of liability, and Remax continues to deny the material allegations. The final approval of the settlement agreement is subject to the appeals process.