MLS PIN Paves a New Path: $3M Settlement and Policy Revamp in Landmark Broker Commission Lawsuit

In a significant development following years of legal proceedings, MLS Property Information Network (MLS PIN), the largest MLS in New England, has agreed to a settlement in one of three buyer broker commission class action lawsuits. The settlement includes a payment of $3 million and an overhaul of its policies, with MLS PIN also set to cooperate against the remaining defendants in the lawsuit.

These defendants, named in the suit known as Nosalek, include RE/MAX, HomeServices of America, Anywhere, and Keller Williams. The lawsuit, originally filed in December 2020, claims that although MLS PIN, which is broker-owned, isn't directly obligated to adhere to the rules set by the National Association of Realtors (NAR), it has adopted a policy mirroring NAR's. This policy mandates that listing brokers must offer universal compensation to buyer brokers when submitting a listing to MLS PIN.

MLS PIN, which has 46,000 subscribers across New England and New York and employs a team of 60, denied any liability in the settlement but agreed to the terms in order to avoid further legal expenses and complications. From the agreed $3 million settlement, legal fees will claim up to $900,000, expenses will account for $200,000, notification of settlement class members will cost $250,000, and the three lead plaintiffs will receive up to $2,500 each.

The remaining funds, which sum to at least $1.6425 million, are proposed by the plaintiffs to be used for additional expenses in the continued litigation against the remaining defendants. According to the plaintiffs’ attorneys, these funds will be beneficial to the class by supporting the active prosecution of the remaining Broker Defendants, including expert testimony funding.

In addition to the financial settlement, MLS PIN will be required to revise some of its buyer broker compensation policies. If approved by the U.S. District Court in Massachusetts, MLS PIN will need to affirm that sellers are under no obligation to offer compensation to cooperating brokers. This is a stark departure from the previously enforced blanket, unilateral offer of compensation to buyer brokers.