DOJ Opposes NAR Commission Settlement Just Ahead of Tomorrow’s Deadline

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DOJ Opposes NAR Commission Settlement

In a last-minute move, the DOJ has filed a statement of interest opposing the National Association of Realtors’ (NAR) commission lawsuit settlement, just days before its final approval. The DOJ raised concerns over a provision requiring buyers and their agents to sign a written agreement before touring homes, arguing it could stifle competition among brokers.

The DOJ, which did not participate in the lawsuit or the settlement talks, is specifically challenging the requirement for buyers and their agents to sign a written agreement before touring homes. The DOJ argues that this could stifle competition among brokers, potentially limiting how they compete for clients, and could raise antitrust concerns.

While the settlement does maintain the controversial practice of cooperative compensation, which the DOJ had previously opposed, it’s this buyer agreement provision that has drawn the department’s ire. In its filing, the DOJ suggested the agreement requirement could restrict competition and asked the court to clarify that approval of the settlement doesn’t prevent future antitrust enforcement.

The DOJ’s concerns come amid heightened scrutiny of practices in the real estate industry. The department’s involvement underscores the potential implications for brokerages nationwide. With the DOJ taking a firm stance, this development may influence how real estate transactions are conducted moving forward.

The final approval hearing for the settlement is set for tomorrow afternoon, with NAR continuing to push for the deal’s approval. However, the DOJ’s opposition introduces uncertainty, leaving many to question how the court will weigh the DOJ’s arguments. Should the court side with the DOJ, it could mark a significant shift in regulatory oversight.

The DOJ’s intervention highlights its broader efforts to promote fair competition in various industries. By challenging aspects of the settlement, the DOJ aims to address antitrust concerns and ensure competitive practices remain intact. The real estate industry, already under the DOJ’s microscope, could face additional investigations should the court heed the DOJ’s warnings.

For now, all eyes are on the court and how it will handle the DOJ’s objections. This case demonstrates the DOJ’s commitment to upholding competitive practices, even in areas where it was not initially involved.

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Housing Rezoning Deal

New York Mayor Eric Adams and the City Council are close to reaching a historic deal on a major rezoning plan aimed at addressing the city’s housing shortage. The proposal, called City of Yes for Housing Opportunity, would pave the way for tens of thousands of new homes, tackling the worst housing crisis the city has faced in five decades.

Sources say negotiations are still ongoing, but a committee vote is expected this week, with a final City Council vote in early December. The plan includes $5 billion in funding for affordable housing and infrastructure, with $1 billion from Governor Kathy Hochul in next year’s state budget.

The deal may see some adjustments to Adams’ initial proposal, including removal of parking mandates and allowances for accessory dwelling units after concerns from local council members. The plan also aims to lift restrictions on building attic apartments and converted garages, while allowing more housing above storefronts and converting unused office spaces into apartments.

Critics argue that the rezoning will lead to over-development, straining infrastructure, schools, and traffic. However, supporters say it’s a crucial step to address the city’s severe housing shortage, with the plan expected to create 80,000 new units, mostly at market rate.

NYC Near Historic

Latino Community Foundation Welcomes New Leaders

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The Latino Community Foundation (LCF), having raised $100 million to support Latino civic and economic power across California and beyond, has appointed two new board members—Hector Mujica, Head of Americas Philanthropy at Google.org, and Angélica Salas, Executive Director of CHIRLA. 

Hector Mujica, a longtime advocate for Latino causes, brings innovative philanthropic experience to the board. “I’m humbled and energized to join under Julián’s leadership,” said Mujica, citing his admiration for LCF’s work in democratizing philanthropy.

Angélica Salas, renowned for her advocacy on immigrant rights and grassroots organizing, also shared her excitement. “I’m honored to contribute to advancing LCF’s programs and building power in our communities,” said Salas.

Julián Castro, LCF CEO, called the appointments pivotal, saying their commitment will help navigate challenges and drive grassroots movements and innovation in the fight for Latino empowerment.

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