Keller Williams Realty agreed to pay $20 million to settle the Batton home-buyer commission lawsuit, which alleges Keller Williams, RE/MAX, Anywhere Real Estate and the National Association of REALTORS® conspired to fix agent commissions and inflate home prices.
Keller Williams is the first defendant in the class-action lawsuit to settle. The preliminary, “ice-breaker” settlement, disclosed in federal court in Chicago on Monday, must be approved by a judge.
Keller Williams spokesperson Darryl Frost said, “Keller Williams is pleased to reach a nationwide settlement releasing the company — and all of our franchisees and affiliated agents and teams — from antitrust litigation brought by home buyers who purchased residential real estate that was listed on a MLS during the relevant time period.”
The plaintiffs argue that buyer agent commissions were inflated by a rule requiring the home seller to pay the buyer-broker commission in a transaction. That rule was dropped as part of the Sitzer Burnett class-action lawsuit settlement in 2024. In that suit, NAR agreed to pay $418 million over four years and amend its rules. The most salient part of that settlement was the removal of commission promises from MLS listings and requiring buyers to sign broker agreements with their agents before any home showings.
In response to the Keller William settlement, NAR said it would continue to pursue all legal options in pursuit of an “outcome that best serves members, the industry and consumers.”
“We respect Keller Williams’ right to settle these claims and anticipated the possibility they would do so,” NAR said. “NAR remains actively engaged in the Batton joint defense group, and we continue to defend our rules where questioned. Given recent history and the dynamics of this case, NAR continues to pursue all potential resolutions, both non-litigation and litigation, to reach a result that is in the best interest of our members, the industry and consumers.”
In an email sent to Keller Williams market leaders, President and CEO Chris Czarnecki said the brokerage decided to settle the lawsuit to eliminate uncertainty for its agents.
“We came to the decision to settle with careful consideration for the immediate and long-term well-being of our franchisees and agents and the business model they depend on,” Czarnecki said. “It was a decision to bring certainty and allow everyone at KW to focus on our mission without distractions. It allows us all to turn our attention back to what we do best: delivering unparalleled value in an ever-evolving real estate market.”