The Keller Williams lawsuit most people search for is the Burnett (formerly Sitzer/Burnett) antitrust case, in which home sellers claimed that the National Association of Realtors (NAR) and large brokerages, including Keller Williams, kept commissions artificially high. After a Missouri jury found the defendants liable in October 2023, Keller Williams settled in February 2024 for $70 million plus changes to its business practices. Together with NAR’s own settlement, the case changed how agent pay is negotiated across the US from August 2024.
Below is a plain-English walk-through of what the case alleged, how it unfolded, what the Keller Williams settlement requires, and what it means in practice if you are selling a home, buying one, or working as an agent.
Keller Williams Lawsuit at a Glance
| Item | Summary |
|---|---|
| Main case | Burnett v. National Association of Realtors, et al. (originally Sitzer v. NAR), a class action in federal court in Kansas City, Missouri |
| Core allegation | NAR rules and brokerage practices required sellers to offer buyer-agent compensation, inflating total commissions and restricting competition |
| Verdict | October 31, 2023: a jury found NAR and the remaining brokerage defendants liable, with damages reported at about $1.78 billion before any trebling |
| Keller Williams settlement | February 2024: $70 million plus practice changes, resolving covered seller claims nationwide |
| Court approval | Final approval of the Keller Williams, Anywhere and RE/MAX settlements was granted in 2024 |
| Industry impact | Combined with NAR’s settlement, new rules took effect in August 2024 on buyer agreements and how compensation is offered |
What the Lawsuit Alleged
For decades, when a home was listed on an MLS affiliated with NAR, the listing broker had to make a blanket offer of compensation to whichever broker brought the buyer. The seller usually paid both commissions out of the sale proceeds. To most sellers this was simply “how it works,” and the total was often quoted as a single figure in the listing agreement.
The plaintiffs, a class of home sellers in Missouri and neighboring areas, argued that this “cooperative compensation” rule, combined with brokerage practices that discouraged buyer agents from showing homes with lower offers, worked as a conspiracy. The result, they said, was total commissions clustered around 5 to 6 percent of the sale price, higher than a genuinely competitive market would produce.
NAR and the brokerages disputed this. They argued commissions had always been negotiable, that the rule helped buyers afford representation without paying cash up front, and that the MLS made the market more efficient. The jury disagreed and found the defendants liable after the 2023 trial.
Timeline of the Case
- 2019: The Sitzer case is filed in Missouri against NAR and major brokerages, including Keller Williams. A similar case, Moehrl v. NAR, is filed in Illinois.
- 2023, before trial: Anywhere Real Estate and RE/MAX reach settlements and exit the case.
- October 31, 2023: The jury returns its verdict against NAR, Keller Williams, HomeServices of America and related entities.
- February 2024: Keller Williams announces its $70 million settlement.
- March 2024: NAR announces a settlement of about $418 million that includes rule changes.
- April 2024: HomeServices of America announces its own settlement.
- August 17, 2024: NAR’s practice changes take effect nationwide.
The Keller Williams Settlement in Detail
The Money
The $70 million was part of roughly $208.5 million paid by the three brokerages that settled before or shortly after trial: Anywhere, RE/MAX and Keller Williams. The Keller Williams deal was written to release claims from home sellers across the country in similar lawsuits, not only the Missouri class. That broad release is why it drew attention, and some objections from plaintiffs in other cases. The court granted final approval later in 2024.
Payments go to class members through a claims process run by the settlement administrator. Individual amounts depend on how many valid claims are filed and the terms of the distribution plan, so any per-seller estimate you see online should be treated with caution.
The Practice Changes
Beyond the payment, Keller Williams agreed to practice changes for a set period. As reported in coverage of the settlement, these include:
- Telling clients clearly that commissions are negotiable and not set by law.
- Not requiring agents to make offers of compensation to buyer brokers, and not requiring agents to join or follow NAR rules on that point.
- Not claiming that a buyer broker’s services are free.
- Training agents on the new requirements and on antitrust compliance.
Why a Franchise Brokerage Was a Target
Keller Williams runs a franchise system: market centers are independently owned and operated, while the franchisor sets policies, training and systems. The plaintiffs argued that large franchisors shaped how their agents handled commissions through those policies and training, so they could be held responsible alongside NAR. The same structure explains why the settlement’s training and policy commitments matter: they flow down through the network to offices across the country.
How the Case Changed Buying and Selling a Home
The biggest day-to-day changes came from NAR’s settlement, which applies to Realtor members and NAR-affiliated MLSs. Keller Williams agents, like most agents in the US, now work under these rules:
| Before August 2024 | After August 2024 |
|---|---|
| Listing broker had to post an offer of buyer-agent compensation on the MLS | Offers of compensation can no longer be posted on the MLS |
| Many buyers toured homes without a signed agreement | Realtors working with a buyer need a written agreement before touring, stating compensation |
| Buyer-agent pay was often assumed to be set by the seller | Buyers and sellers negotiate compensation explicitly; sellers may still agree to contribute |
| Commission levels were rarely discussed in detail | Agents must disclose that fees are negotiable |
For sellers, this means more room to decide how much, if anything, to offer toward a buyer’s agent. For buyers, it means reading and negotiating a buyer representation agreement before the first tour. If you are new to the process, our first-time buyer’s guide explains the basics, and our explainer on the preliminary title report covers another document you will review before closing.
Practical Steps for Sellers and Buyers Now
If You Are Selling
- Interview more than one listing agent and ask each for their fee in writing, along with exactly what it covers: photography, staging advice, marketing, open houses and negotiation.
- Decide with your agent whether to offer a contribution toward a buyer’s agent. It is optional, but in some markets offering one can widen the pool of buyers.
- Read the listing agreement for its term, cancellation terms and any fee owed if you sell to a buyer you found yourself.
- Keep copies of your closing statement. If further settlements are announced, it is the document that proves what you paid.
If You Are Buying
- Expect to sign a written buyer agreement before touring with a Realtor. Ask whether a short-term or single-property agreement is available if you are not ready to commit.
- Negotiate the compensation figure in the agreement, and ask what happens if the seller offers more or less than that amount.
- Talk to your lender early about how any buyer-paid fee affects your cash to close, since loan programs treat these costs differently.
- Consider asking the seller to cover some or all of your agent’s fee as part of your offer.
Questions Worth Asking Any Agent
- What exactly is your fee, and is it a percentage or a flat amount?
- Which services are included, and which cost extra?
- How long does the agreement last, and how can either of us end it?
- How will you handle a listing whose seller is not offering buyer-agent compensation?
What It Means for Agents at Keller Williams and Elsewhere
- Explain your value: with compensation negotiated openly, buyer agents need to show clients what they do for the fee.
- Use compliant forms: written buyer agreements must state a specific, objectively ascertainable compensation amount or rate.
- Avoid steering: never favor listings based on the compensation offered.
- Watch follow-on cases: copycat suits have been filed for buyers and sellers in other regions, and regulators, including the Department of Justice, have continued to take an interest in commission practices.
Other Legal Issues Keller Williams Has Faced
As one of the largest franchise brokerages in the country, Keller Williams has faced other litigation over the years, like its competitors. Media reports have covered a class action under the Telephone Consumer Protection Act over marketing calls made by agents, reported to have been resolved by settlement, and lawsuits from former agents raising workplace conduct claims against the company and individual franchisees. Allegations in a lawsuit are claims, not findings, unless a court or jury rules on them, so check court records or reputable reporting for the current status of a specific case.
Common Misunderstandings About the Settlement
- “Keller Williams admitted wrongdoing.” Settlements typically resolve claims without an admission of liability, and settling defendants generally deny the allegations.
- “Sellers no longer pay buyer agents.” Sellers can still offer to contribute; the change is that the offer cannot be advertised on the MLS and must be negotiated.
- “Every seller gets a check automatically.” Money is paid through a claims process, so eligible sellers had to file a claim by the stated deadline.
- “The rules apply only to Keller Williams.” The August 2024 changes come mainly from the NAR settlement and affect Realtors and NAR-affiliated MLSs nationwide.
Bottom Line on the Keller Williams Lawsuit
The Keller Williams lawsuit ended with a $70 million settlement and commitments that reinforce one point: real estate commissions are negotiable. Whether you are selling or buying, get the fee in writing, understand what it covers, and treat buyer-agent compensation as something to negotiate rather than assume.
Frequently Asked Questions
What is the Keller Williams lawsuit about?
It mainly refers to the Burnett (formerly Sitzer/Burnett) antitrust class action. Home sellers alleged that NAR rules and the practices of large brokerages, including Keller Williams, required sellers to pay buyer-agent commissions and kept total commissions higher than a competitive market would.
How much did Keller Williams pay to settle?
Keller Williams agreed in February 2024 to pay $70 million and to adopt a set of business practice changes, such as telling clients that commissions are negotiable. The court granted final approval to the settlement later in 2024.
Can I get money from the Keller Williams settlement?
Eligible home sellers who paid a commission on a home listed on an MLS during the covered period could file a claim with the settlement administrator. Deadlines and eligibility rules are set out on the official settlement website, so check there rather than relying on third-party summaries.
Did the lawsuit end the 6 percent commission?
There was never a legally fixed commission rate. The settlements made negotiation more explicit, removed offers of buyer-agent compensation from the MLS and required written buyer agreements from August 2024, but agents and clients still agree fees case by case.
Do buyers now have to pay their own agent?
Not necessarily. Buyers must agree compensation with their agent in writing, but sellers can still offer to contribute toward the buyer’s agent fee, and buyers can ask for that in their offer. Who ends up paying depends on the negotiation.
Is Keller Williams still facing lawsuits?
Large brokerages regularly face litigation. The settlement resolved many seller commission claims nationwide, but copycat suits and other cases have been filed, so check court records and current reporting for the status of any specific case.
This article is general information, not legal advice. If you have questions about a claim or a specific agreement, speak to a licensed attorney.
