Real Estate Commission Settlement 2025: Homeowners who sold their property between October 31, 2017, and July 23, 2024, and paid real estate commissions may qualify for compensation from a $730 million settlement. This settlement stems from a lawsuit alleging that major real estate firms engaged in practices that inflated commission fees, violating antitrust laws.
The lawsuit accused real estate companies of restricting competitive pricing, forcing sellers to pay high commission rates. As part of the settlement, companies like Compass, Redfin, and Douglas Elliman have agreed to compensate affected homeowners without admitting wrongdoing. With the claim submission deadline approaching, eligible sellers should act quickly to secure their share. This article explains the details of the settlement, eligibility criteria, expected compensation, and how to file a claim.
Overview of the Real Estate Commission Settlement 2025
| Aspect | Details |
| Total Settlement Fund | $730 million |
| Eligibility Period | October 31, 2017 – July 23, 2024 |
| Eligible Participants | Home sellers who paid real estate commissions |
| Companies Involved | Compass, Redfin, Douglas Elliman, Realty ONE, HomeSmart |
| Claim Submission Deadline | May 9, 2025 |
| Final Approval Hearing | October 31, 2024 |
The Lawsuit That Changed Real Estate Commission Structures
The lawsuit, known as Gibson, et al. v. National Association of Realtors, et al., accused several real estate companies of coordinating to maintain high commission rates. The plaintiffs argued that these companies set non-negotiable commission fees, leaving home sellers with limited options.
The lawsuit claimed that the industry-standard commission rates of 5% to 6% were artificially maintained, preventing sellers from seeking lower fees. By limiting competition, the real estate firms allegedly forced sellers to pay more than necessary when selling their homes. The settlement aims to compensate those affected and promote more transparent pricing in the real estate market.
Defendants in the Lawsuit
Several well-known real estate companies agreed to contribute to the settlement fund. Their contributions are as follows:
| Company | Settlement Amount |
| Compass Inc. | $57.5 million |
| Real Brokerage | $9.25 million |
| Realty ONE | $5 million |
| @Properties (At World Properties) | $6.5 million |
| Douglas Elliman | $7.75 million (+$10 million contingent) |
| Redfin | $9.25 million |
| Engel & Völkers | $6.9 million |
| HomeSmart | $4.7 million |
| United Real Estate | $3.75 million |
Although the companies did not admit to any wrongdoing, their settlements aim to resolve the allegations and provide financial relief to affected homeowners.
Who Qualifies for a Settlement Payment?
To qualify for a share of the settlement, applicants must meet the following criteria:
- Sold a home between October 31, 2017, and July 23, 2024.
- Listed the home on a Multiple Listing Service (MLS) in the United States.
- Paid a commission to a real estate brokerage during the home sale.
If you are unsure whether you qualify, review your home sale records to verify if you paid a commission during this period. Even if your home was sold through a brokerage not listed in the lawsuit, you may still be eligible if the sale met the above conditions.
What If You Sold Multiple Homes?
If you sold more than one property during the eligibility period, you can file separate claims for each transaction where a commission was paid. Each claim must include documentation proving the sale and the commission amount. Filing multiple claims can increase your total compensation.
Required Documents to Submit a Claim
To verify eligibility and process your claim, you must provide the following documents:
- Closing documents showing the sale date and commission amount paid.
- Proof of the commission fee paid to the real estate brokerage.
Without these documents, your claim may be delayed or denied. Ensure that the documents clearly show the date of the sale and the amount of commission paid.
How Much Compensation Can You Expect?
The amount each claimant receives will depend on several factors, including:
- The number of claims submitted by eligible home sellers.
- The amount of commission paid in each transaction.
- The proportional distribution of the $730 million settlement fund.
Estimating Potential Refunds
While the exact refund amounts have not been determined, estimates based on previous settlements suggest that claimants may receive 10% to 20% of the commission fees they paid. For example:
- A seller who paid a 5% commission on a $400,000 home sale ($20,000 commission) could receive between $2,000 and $4,000.
- Sellers who paid higher commissions may receive larger refunds, depending on the total number of claims submitted.
Final payment amounts will be calculated after all claims are reviewed and approved.
How to File a Claim for Real Estate Class Action Settlement
Follow these steps to submit your claim and secure your share of the settlement:
- Confirm Your Eligibility:
- Visit the official settlement website at RealEstateCommissionLitigation.com.
- Use the provided resources to verify if your home sale qualifies.
- Gather Supporting Documents:
- Collect your closing statements and commission payment records.
- Ensure that the documents show the sale date and the amount of commission paid.
- Submit the Claim Form:
- Complete the online claim form available on the official website.
- Alternatively, you can submit a paper claim form by mail.
- Wait for Review and Payment:
- After submitting your claim, the Settlement Administrator will review the documents to verify eligibility.
- If approved, you will receive your payment once the settlement is finalized.
Important Dates
Make sure to submit your claim before the deadline to ensure eligibility. Key dates to remember are:
| Event | Deadline |
| Exclusion & Objection Deadline | October 3, 2024 |
| Final Approval Hearing | October 31, 2024 |
| Claim Form Submission Deadline | May 9, 2025 |
Missing these deadlines will result in losing your opportunity to receive compensation.
What Happens Next?
Once all claims are submitted, the Settlement Administrator will review the documents to determine eligibility and calculate the final compensation amounts. The final approval hearing is scheduled for October 31, 2024. If the settlement is approved, payments will be distributed throughout 2025.
If you previously submitted a claim related to this case, there is no need to reapply. Your claim will still be considered. For updates on the settlement process, visit RealEstateCommissionLitigation.com.
FAQs
Who is eligible to file a claim in the Real Estate Commission Settlement 2025?
Home sellers who paid real estate commissions between October 31, 2017, and July 23, 2024, and listed their property on an MLS are eligible to file a claim.
Can I file multiple claims if I sold more than one home?
Yes, you can submit separate claims for each home sale, provided you have documentation showing the commission paid for each transaction.
What documents do I need to submit my claim?
You must provide closing documents that show the sale date and the commission amount paid to the real estate brokerage.
How much compensation can I expect to receive?
While the exact amount depends on the number of claims submitted, estimates suggest sellers may receive 10% to 20% of the commission fees they paid.
When is the deadline to submit my claim?
The deadline to submit your claim is May 9, 2025. Claims can be submitted online or by mail before this date.
Conclusion
The $730 million Real Estate Commission Settlement provides an opportunity for home sellers to receive compensation for inflated commission fees paid between 2017 and 2024. With major real estate companies contributing to the settlement fund, eligible homeowners can recover a portion of the fees they paid during their home sales.
To secure your share of the settlement, review your home sale records, gather the necessary documents, and submit your claim before the May 9, 2025 deadline. By taking action now, you can ensure that you receive the compensation you deserve. For more information and to submit your claim, visit RealEstateCommissionLitigation.com.
