With Contributing Writer L Van Buren
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Section 01–03
- Triggering the Dominoes Effect: (Rhonda Burnett’s Fight Begins)
- Her Story Introduction: (In Her Own Words)
Section 02–03
- Jerod Breit: (A Stand for Justice)
- Hollee Ellis: (Resilience in the Face of Challenge)
Section 03–03
- Challenging the Status Quo: (DOJ’s ongoing Legal Battles with the National Association of Realtors®)
- Defying Giants: (Rhonda Burnett’s Crusade Against Real Estate Norms)
- Readers Questions…
- Law Offices of Troy M. Ortiz: (A Professional Legal Perspective)
- Quotes
Triggering the Dominoes Effect: (Rhonda Burnett’s Fight Begins)
One woman, through a single act of defiance, catapulted a domino effect that would reverberate throughout the real estate industry.
Rhonda Burnett, undeterred by the vast influence of the National Association of Realtors® (NAR®), (America's largest/biggest non-profit trade association) challenged the entrenched commission structures that many thought unassailable.
Her lawsuit did not just question fees — it sparked a movement, calling into question long-held industry norms that had been accepted as immutable.
Rhonda’s stand against the NAR® became a signal for others who felt disenfranchised by a system designed to benefit the few at the expense of the many.
Her case became a rallying point, uniting homeowners and industry watchers alike, each one a domino set in motion by her initial push.
The repercussions of this legal battle stretched far beyond her circumstances, proposing a new blueprint for fairness and transparency in real estate transactions across the country.
Her Story
Introduction: (In Her Own Words)
As Rhonda Burnett sat across the kitchen table at her home from her real estate agent, a mixture of disbelief and resolve settled over her.
“The nerve of this agent,” she thought to herself, stunned by the rigidity of the commission rates being nonchalantly laid before her as if set in stone.
Rhonda had never planned to sell her home so soon, but life’s unpredictable rhythms had prompted a reassessment of her needs and priorities.
The house had served its purpose over the years, initially purchased as a convenient place for her son during his university days.
Now, with changing family dynamics and financial considerations, it seemed the right time to move on.
Her decision led her to a meeting with a recommended real estate agent, a young woman who came highly praised but whose approach soon struck Rhonda as unnervingly rigid.
As they sat down to discuss the sale, the agent slid a form across the table, each line and checkbox prescribing not just figures but constraints.
“It’s quite straightforward,” the agent began, pointing to the predetermined commission rates listed on the form.
“Just check the box for the commission rate you’re comfortable with. The typical charge is 06%, which is standard across the industry.”
“But isn’t there any room to negotiate?” Rhonda asked, her voice tinged with hope and scepticism.
The agent’s response was swift and rehearsed,
“Really, it’s about market competitiveness. Lowering the commission might deter other agents from showing your home, which can make it harder to sell.”
The simplicity of the checkboxes, the casual dismissal of negotiation, it all crystallized into a stark revelation for Rhonda.
This wasn’t just an isolated practice; it was a widespread norm, one that customers like her were expected to accept without question.
Her frustration, now mixed with a growing sense of duty, solidified her determination.
“The system is rigged, this system needed a challenge, and she felt increasingly compelled to be the one to do it.”
It was this moment, this obvious sense of injustice, that ignited a spark within Rhonda.
It wasn’t just about the numbers scribbled on the page — this was a question of fairness, of right and wrong.
“This isn’t just about me,” Rhonda reflected, the wheels turning as she pondered the countless other homeowners who must have felt the same pinch, the same helplessness against a seemingly impenetrable industry standard.
It was then that she realized the path she would have to take — a path that would lead her to challenge the towering presence of the National Association of Realtors®.
And so, with a deep breath and a resolve as firm as the foundations of the very homes she sought to protect, Rhonda decided it was time to stand up, not just for her rights, but for the rights of every homeowner coerced into accepting unfair practices.
“This is where it begins,” she resolved, “ and I am ready to fight.
Section 02–03
- Jerod Breit: (A Stand for Justice)
- Hollee Ellis: (Resilience in the Face of Challenge)
Jerod Breit: (A Stand for Justice)
Jerod Breit, a retired police officer from St. Louis, Missouri, brought his commitment to fairness and integrity from the streets into the courtroom.
After years of serving his community, Jerod’s fight for justice took a personal turn when he decided to sell his home, a decision that unexpectedly thrust him into the complexities of the real estate market.
“In my time as an officer, I believed in protecting people, in making things right.
That didn’t change when I retired,” Jerod explains. His foray into real estate was meant to be straightforward — sell his house and move on to a quieter life.
However, what he encountered was a system that seemed rigged against the very principles he had upheld for years.
“The agent I worked with offered what he called a ‘law enforcement special’ of 05.05% commission, which already seemed high. But when the sale closed, I discovered I’d been charged the full 06%. It was a blatant lie, and it hit hard.
It wasn’t just about the money; it was the betrayal of trust,” Jerod recounts, his disappointment evident.
Driven by a deep-seated need for fairness, Jerod joined the lawsuit against the National Association of Realtors® (NAR®).
He saw it as a continuation of his lifelong commitment to justice, now fighting a different battle against deceptive practices that preyed on homeowners.
“The message I want to leave behind in all of this,” Jerod pauses, reflecting on the journey, “Is that standing up for what’s right might take you down a tough path, but it’s always worth it. We have to challenge the status quo if it’s unjust. We have to protect each other not just on the streets but in every aspect of our lives.”
“Jerod Breit’s story adds another layer to the narrative of the lawsuit, highlighting the diverse backgrounds of the plaintiffs and their united stand against unfair practices in the real estate industry.”
“His perspective as a retired police officer reinforces the theme of justice and protection, extending it beyond traditional boundaries into the realm of consumer rights.”
Hollee Ellis: (Resilience in the Face of Challenge)
Hollee Ellis, a former school teacher, along with her husband, a forklift operator, became pivotal figures in this landmark legal battle against entrenched real estate practices.
Their decision to join the lawsuit was not taken lightly; it stemmed from a profound sense of duty and a personal grievance with the system that they felt exploited their trust and financial resources.
“Joining this lawsuit was about rectifying a wrong, not just for us but for every homeowner who’s ever felt cornered by unfair practices,” Hollee explains.
Their journey into the legal fight began when they sold their modest home in Missouri, a process during which they encountered the harsh realities of fixed commission rates that severely dented their financial return from the sale.
The experience left them grappling with a sense of injustice, compelling them to seek change.
Despite the emotional toll and the complexity of taking on such a powerful industry, Hollee remains steadfast. “The agony and anguish caused by this ordeal were overwhelming, but they strengthened my resolve,” she reflects.
This resilience has not only helped her navigate the lawsuit but also adjust to a new chapter in life, relocating for her job in a nonprofit organization in South Carolina.
“Though the battle has been tough, it has brought a new purpose to our lives. We’re not just fighting for our own case; we’re standing up for principles of fairness and transparency that should define any industry,” she adds.
Hollee and her husband continue to thrive, drawing strength from their role in this pivotal fight and their commitment to seeing justice served.
Hollee’s story underscores the broader implications of the lawsuit and the potential for individual actions to drive significant industry-wide change.
Her courage and the continued support of her husband highlight the personal resolve and the collective strength that propel movements for reform, making it clear that even against formidable odds, persistence and resilience can lead to meaningful progress.
Section 03–03
- Challenging the Status Quo: (DOJ’s ongoing Legal Battles with the National Association of Realtors®)
- Defying Giants: (Rhonda Burnett’s Crusade Against Real Estate Norms)
- Readers Questions…
- Law Offices of Troy M. Ortiz: (A Professional Legal Perspective)
- Quotes
Challenging the Status Quo: (DOJ’s ongoing Legal Battles with the National Association of Realtors®)
The Department of Justice (DOJ) has engaged with the National Association of Realtors® (NAR®) on several occasions, mostly concerning antitrust regulations.
One key interaction involved a long-term investigation and subsequent legal actions. Here’s a brief overview of a notable case:
2005 DOJ Lawsuit Against NAR: In 2005, the DOJ filed an antitrust lawsuit against NAR, challenging its policies that allegedly restricted competition among real estate brokers, particularly concerning the online display of property listings.
The DOJ argued that NAR’s rules were preventing new forms of real estate brokerage models, especially internet-based systems, from competing effectively with traditional brokers.
2008 Settlement: The original lawsuit of 2005 was settled in 2008, with NAR agreeing to a settlement that required them to amend their policies and allow internet-based brokers to have the same access to property listings as traditional brokers.
This settlement was a victory for promoting more competition in the real estate brokerage industry.
Another Case… another time.
2020 Agreement and 2021 Withdrawal: In November 2020, the DOJ announced another settlement with NAR that would change several rules the DOJ claimed were limiting competition among real estate agents.
However, in a significant and unusual move, the DOJ withdrew from the agreement in July 2021, indicating that they might pursue broader investigations into NAR’s practices, reflecting a renewed commitment to ensuring competitive practices in real estate brokerage beyond the initial settlement terms.
These actions by the DOJ indicate a proactive stance in monitoring and addressing anti-competitive practices within the real estate industry, though specific instances where the DOJ lost or withdrew without further action are less documented in public records.
Please note: “These incidents underscore the persistent legal oversight and measures undertaken by the Department of Justice (DOJ) against the National Association of Realtors® (NAR®).”
The focus of these actions has been on maintaining regulatory oversight to promote fair competition within the real estate industry.
Such cases highlight the complexities and ongoing challenges in regulating and ensuring fair competitive practices across the real estate sector.
Defying Giants: (Rhonda Burnett’s Crusade Against Real Estate Norms)
In the shadow of a Goliath that even the Department of Justice struggled to challenge, one woman’s resolve to stand up for what’s fair ignited a landmark battle against the real estate giant, the National Association of Realtors® (NAR®).
Rhonda Burnett, armed with nothing but her conviction and the stark reality of unfair practises, became the unlikely David in a fight to reshape an industry.
“Her journey not only challenges long-standing norms but also signals a closer look at how deep the roots of such practices extend and why even the most formidable opponents have failed to enforce change.”
Readers Questions…
Q: What significant verdict did the jury reach in the Sitzer Burnett case, and what were the implications for the home sellers?
A: In a landmark verdict, the jury awarded significant damages to home sellers in the Sitzer Burnett case.
The suit filed on behalf of around 500,000k Missouri home sellers, sought reimbursements for commissions totalling $1.78 billion paid to buyer brokers.
Ultimately, the jury awarded damages amounting to $1,785,310,872b. According to legal provisions, this figure will be automatically trebled to $5.356 billion.
Q: What were the main arguments presented by the plaintiffs in the Sitzer Burnett case, and how did the jury respond?
A: The plaintiffs argued that they were owed reimbursements for commissions paid to buyer brokers. The jury responded by awarding significant damages in favour of the home sellers.
Q: How might the outcome of the Sitzer Burnett case affect the real estate industry, particularly concerning buyer-broker commissions?
A: The outcome could potentially lead to changes in how buyer-broker commissions are structured and negotiated within the real estate industry.
Q: What legal principles or statutes influenced the jury’s decision in awarding damages to the home sellers?
A: The jury likely considered legal precedents and statutes related to real estate transactions and the fiduciary duties of brokers to their clients.
Q: How did the plaintiffs’ legal team gather and present evidence to support their claims of overpaid commissions to buyer brokers?
A: The legal team likely collected documentation and testimonies from home sellers to demonstrate the alleged overpayment of commissions to buyer brokers.
Q: What actions can the defendant or the real estate industry take to address the implications of the jury’s verdict in the Sitzer Burnett case?
A: The defendant and the real estate industry may consider potential legal appeals or reforms to address the implications of the verdict and any broader industry concerns.
Q: In light of court documents, when is the final approval hearing scheduled for NAR’s settlement, and what is HomeServices of America’s stance on the matter?
A: According to court documents, the final approval hearing for NAR’s settlement is set for November 26, 2024.
Additionally, despite the firm’s settlement agreement not yet receiving preliminary approval from the court, a spokesperson for HomeServices of America stated that the firm anticipates a final approval hearing to take place between late November/2024 and December/2024 of this year.
Chris Kelly, an executive vice president at HomeServices of America, expressed confidence that their agreement will receive preliminary approval from the court.
He emphasized that the settlement emerged from extensive, transparent, and honest negotiations, and the firm firmly believes that the court will recognize its alignment with the best interests of the class.
Looking forward, Kelly highlighted that the settlement provides their companies, agents, and franchisees with a greater sense of certainty, enabling them to concentrate on delivering exceptional service to clients in an ever-evolving real estate market.
“The proposed settlement in the Sitzer Burnett case is currently awaiting final acceptance and approval from the judge.
Once approved, the settlement will go into effect, bringing a resolution to the matter.
We can expect to discover when the final approval will occur during the upcoming court proceedings or through official announcements from the court.”
Law Offices of Troy M. Ortiz: (A Professional Legal Perspective)
Examine the comprehensive legal analysis from the perspective of an attorney as attorney Troy M. Ortiz offers his insight into the case, whose expertise brings clarity to complex legal landscapes.
His insights into the $418 million NAR® settlement reveal the substantial implications for the real estate industry, providing a detailed look at how the changes could affect the commission structures and practises moving forward.
This settlement addresses past controversies and sets the stage for more transparent and equitable practise in real estate transactions.
Learn how these changes will impact both real estate professionals and consumers and what this means for the future of buying and selling property.
For a more in-depth analysis of the actual settlement from a seasoned legal professional, visit: Troy M. Ortiz’s detailed coverage here.
Quotes,
On-Justice:
- “Injustice anywhere is a threat to justice everywhere.” — Martin Luther King Jr.
- “Justice will not be served until those who are unaffected are as outraged as those who are.” — Benjamin Franklin
On-Loyalty:
- “Loyalty to the country always. Loyalty to the government when it deserves it.” — Mark Twain
- “Loyalty and devotion lead to bravery. Bravery leads to the spirit of self-sacrifice. The spirit of self-sacrifice creates trust in the power of love.” — Morihei Ueshiba
On-And-Against Exploitation:
- “The world will not be destroyed by those who do evil, but by those who watch them without doing anything.” — Albert Einstein
- “Exploitation and oppression is not a matter of class alone. It is a matter of hearts.” — Suzy Kassem
Scripture On Guidance and Blindness:
- “Can the blind lead the blind? Will they not both fall into a pit?” — Luke 06:39, The Holy Scriptures (The Bible)
- “Where there is no guidance, a people falls, but in an abundance of counsellors there is safety.” — Proverbs 11:14, The Holy Scriptures (The Bible)
On-Integrity and Doing What is Right:
- “The time is always right to do what is right.” — Martin Luther King Jr.
- “Integrity is doing the right thing, even when no one is watching.” — C.S. Lewis
On the Pitfalls of Greed:
- “For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” — 01 Timothy 06:10, The Holy Scriptures (The Bible)
- “Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.” — Erich Fromm
“These quotes can be woven into discussions or presentations to provide depth and resonate with themes of moral and ethical conduct, especially in contexts that involve fairness, justice, and societal impact.”
About Lord Van Buren: — Steering Corporate Development since 1997 and a Licensed Real Estate Broker since 2014 -Bridging Corporate Evolution with Client-Centric Measured Solutions.
Licensure No: (WI)-57509–90
Written By: L Van Buren
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