Redfin, a U.S.-based real estate brokerage that runs one of the country’s most popular residential portals, has joined the growing list of organizations that have made out-of-court settlements with home sellers who claim agent commissions are illegally inflated.

Redfin agreed to pay $9.3 million into a fund to settle claims by plaintiffs in the consolidated Gibson and Umpa commission lawsuits. HousingWire first reported the settlement, based on a securities disclosure filed Monday.

The filing didn’t say whether Redfin had agreed to any business practice changes, as the National Association of Realtors did in a related settlement filed in March.

Redfin said the settlement did not “concede or validate any of the claims asserted against us in the lawsuits,” according to the securities filing.

The company said its flat-fee business model offered an alternative to the standard commissions that provoked the lawsuit.

“As the only U.S. brokerage that has saved consumers more than $1.5 billion in fees, Redfin never belonged in this litigation,” a Redfin spokesperson told HousingWire.

“We always have been, and always will be, advocates for transparency and saving consumers money — directly selling homes to buyers to bring down fees and broadly publishing commission data so consumers understand how much they are paying.”

Besides the NAR, several nationwide brokerages have settled these commission suits, including Douglas Elliman, Realty One Group, At World Properties, Anywhere, RE/MAX, Keller Williams, Compass, HomeServices of America and The Real Brokerage. 

 

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