Nar Faces Another Antitrust Complaint Over Its Membership Structure

Despite gaining final approval of its commission lawsuit settlement agreement, the antitrust issues for the National Association of Realtors (NAR) are far from over.

Last week, Luz de Amor Eytalis — the broker of Texas-based Strategic Realty — filed an antitrust suit in U.S. District Court in Wichita Falls, Texas. Eytalis filed an amended complaint to the suit a day later. She is representing herself in the case.

In her complaint, Eytalis claims that the NAR rule that requires Realtors to join their local, state and national associations is an illegal “tying agreement” and an antitrust violation. She claims the defendants have “engaged in monopolistic practices that unlawfully restrict competition in the real estate market.”

“Brokers must ‘purchase’ association memberships they may not need or want to obtain MLS services,” Eytalis wrote. “This structure has created an anti-competitive monopoly over MLS services, limiting the market’s ability to support alternative trade organizations, thereby stifling competition in violation of the Sherman Act.”

In addition to NAR, Eytalis names the Texas Association of Realtors (TAR), Wichita Falls Association of Realtors (WFAR) and Paragon MLS Connect (a technology platform that powers MLSs, including the WFAR MLS) as defendants.

Eytalis is asking for $5.8 million in damages, unspecified restitution and punitive damages, and a jury trial. She is also asking the court to declare that the membership agreements violate antitrust laws and to require the Realtor associations to create another MLS system that does not require membership in all three organizations to access.

“These practices disproportionately affect minority professionals and have resulted in inequitable enforcement of rules and exclusion from fair competition in the real estate industry,” Eytalis wrote.

Eytalis’ suit comes after similar suits were filed in Michigan, Pennsylvania and California.

In an emailed statement a NAR spokesperson wrote that the trade group would respond to the claims in court.

“NAR does not require that MLS access be limited to NAR members. MLSs are operated at the local level and each MLS determines individual participation requirements,” the spokesperson added.

The other defendants did not immediately return HousingWire’s request for comment.