HousingWireHousingWire
The broker of Texas-based Strategic Realty has filed an amended complaint in her antitrust suit tied to the National Association of Realtors’ (NAR) three-way membership agreement structure. Luz de Amor Eytalis’ amended complaint contains nearly identical allegations to the original complaint, but Eytalis has altered the list of defendants named in the suit.
While the suit still names NAR, the Texas Association of Realtors (TAR) and the Wichita Falls Association of Realtors (WFAR) as defendants, Eytalis has removed Paragon MLS Connect and added the Wichita Falls Association of Realtors MLS (WFMLS).
In the amended complaint, Eytalis claims that NAR’s three-way membership agreement structure creates a monopoly that “unlawfully restrict competition in the real estate market by requiring brokers to join multiple associations as a precondition for accessing MLS services, imposing a financial burden without proportional benefit and penalizing agencies if members opt to not join the membership impeding their ability to do business.”
Additionally, she claims that the structure “disproportionately affects minority professionals,” and has “resulted in inequitable enforcement of rules and exclusion from fair competition in the real estate industry.”
Eytalis alleges that the defendants “have established an exclusionary practice, requiring brokers to join multiple associations (NAR, TAR, and WFAR) to gain access to MLS services provided by WFMLS, which are essential for conducting real estate transactions.”
“This mandatory membership requirement constitutes an unlawful tying arrangement,” the complaint adds.
The suit also alleges that the membership structure has created a monopoly over MLS services, which Eytalis claims limits “the market’s ability to support alternative trade organizations, thereby stifling competition.”
As a result of the membership structure, Eytalis claims that she and other brokers are “subject to excessive and unjustified fees due to the forced memberships, as these associations fail to provide proportional value in return for these dues.” She also said she has “experienced a significant financial burden resulting from these forced membership dues and MLS fees, which have diminished her revenue and impeded her business.”
Additionally, Eytalis claims that the defendants “have continued to harass plaintiff with invoices and threatening membership of all agents sponsored if invoices are not paid by specific dates causing distress and hardship.”
As a result of this, Eytalis is also seeking a preliminary injunction “to preserve her MLS access and prevent Defendants from enforcing termination based on the disputed invoice.”
“This relief ensures that Plaintiff’s business operations and client services remain intact while the underlying issues are resolved,” the filing states.
This is one of several antitrust suits filed against NAR, as well as state and local Realtor associations, over NAR’s membership structure and MLS access in certain states. NAR has objected to Eytalis’ motion for a preliminary injunction, but the court must still rule on the motion.
