Luxury brokerage Douglas Elliman has become the latest brokerage to join in the National Association of Realtors’ commission lawsuit settlement.
In a filing with the Securities and Exchange Commission, the New York-based company said it will pay $7.75 million within 30 days and then two payments of $5 million each dependent on its cash balance, to be made no later than the end of 2027.
The filing also states that, like the other brokerages settling commission lawsuits, Elliman is pledging to make changes to its business practices that plaintiffs have charged push home prices up by boosting buyer’s agent commissions.
Elliman will remind brokerages and agents “that Douglas Elliman has no rule requiring agents to make or accept offers of compensation,” will require its brokerages and agents to “clearly disclose” that commissions are fully negotiable and that buyers get shown the listing agent’s offer of buyer’s agent commission “as soon as possible”, and bar its brokerages and agents from “using any technology (or manual methods) to sort listings by offers of compensation, unless requested by the client.”
In addition, the brokerage will “remind” its brokergaes and agents of their obligation to show properties regardless of offers of compensation and will develop new training materials for its brokers and agents.
In the filing, Elliman said some of what’s been agreed “have been a part of Douglas Elliman’s longstanding policies and practices.”
NAR’s settlement in the highest-profile commission lawsuit received preliminary approval from the case’s judge last week. Berkshire Hathaway HomeServices, the biggest brokerage to not settle lawsuits against it before the case went to trial, inked its own settlement deal last week, as well.