Jury Orders Realtor Group to Pay $1.8 Billion For Allegedly Inflating Commissions

A federal jury ordered the National Association of Realtors and brokerages to pay $1.8 billion in damages for artificially inflating real estate commissions.

The lawsuits allege NAR rules require home sellers to offer commissions to the buyer's agent, keeping commissions high.

Typically the seller pays both agents, splitting a 5-6% commission. Plaintiffs say buyers should pay their agent.

NAR plans to appeal the verdict and says offers of compensation can be as low as $1. Critics say regulatory barriers prevent buyers from financing commissions in mortgages.

This follows other government scrutiny of NAR rules potentially restraining competition in real estate services.