Florida-based The Keyes Company/Illustrated Properties, which describes itself as the largest independent brokerage in the state, has reached an agreement to settle commission lawsuits filed by se inllers, according to a filing in federal court today.
No details of the agreement were immediately released. In response to an inquiry from RISMedia, Mike Pappas, CEO of Keyes/Illustrated properties, called the settlement “a strategic decision.”
“At The Keyes Company and Illustrated Properties, our priority has always been to support our agents and deliver outstanding service to their customers. After carefully considering all options, we believe that settling this matter is the most prudent course of action,” he said. “This decision allows us to move forward without the distraction of ongoing litigation, so we can remain focused on what we do best — leading the market with innovation, a commitment to our community, and providing exceptional value and support to our real estate associates.”
Pappas added that his focus is “firmly on the future.”
Keyes/Illustrated Properties becomes the latest brokerage to strike an agreement in one of the many copycat lawsuits, after all the companies named in the first two commission class-actions (known as Moehrl and Burnett) eventually struck deals. The brokerage is also notable in that it was named in one of a smaller number of state-level commission lawsuits. That suit is currently paused pending a final hearing on the NAR settlement agreement in late November.
But the settlement Keyes/Illustrated properties negotiated was with lawyers representing plaintiffs in the largest copycat case, filed hours after the Burnett verdict by the same attorneys. That lawsuit initially added a handful of large franchisors as defendants, but in April named several big independents, including Keyes/Illustrated Properties.
The company is also only the third to have struck a nationwide settlement after the deadline for opting into the separate agreement struck by the National Association of REALTORS® (NAR) passed in mid-June. United Real Estate and HomeSmart forged their own settlements back in July.
Keyes/Illustrated Properties was not automatically included in the NAR settlement due to its size—companies with more than $2 billion in 2022 transaction volume had to pay an additional fee to join the NAR agreement.
This is a developing story. Stay turned to RISMedia for updates.
Editor’s note: this story was updated at 6:42 p.m. eastern time with comments from Mike Pappas.
If the lawyers were in it “to protect the consumer” there would be no need for the “copycat lawsuits”. The rules have already changed nationally, there is nothing left to “fix”, this is clearly all about the money the lawyers will earn.
The fact that the same lawyer filed this suit right after the settlement of the original lawsuit shows me that the lawyer is not out for anything more than money to pad their own pocket. After the lawyer gets paid, the plaintiffs will end up with pennies on the dollar. The only people that ever win in a lawsuit are the lawyers. How do people not see this? I would love for the plaintiffs to see Mr. Ketchmark’s check from this lawsuit and compare it to their paychecks.
I don’t have any issues with the new rules. However, I do have an issue with copycat lawsuits. The DOJ should be investigating this law firm, not us. This is just sad! The world today is all about blaming someone else for their own mistakes. This law firms Greed is beyond measure.
If this law firm was truly about righting a wrong, then they would have been happy with the practice changes that have been implemented, but obviously it was not about that, it was all about Greed. Way to go guys.
When my father owned a small real estate company in Baltimore prior to any MLS or commission sharing, the commission to list your house to sell was around 5-7%. Where did it ever say there were 2 parts to that fee, one part for the buyer. It was all meant for sellers agent. If the sellers broker wanted to share the commission for help and assistance in selling
a property, that had nothing to do with buyers agency.