Five More Brokerages Settle Commission Lawsuits for $39.7 Million
The dominoes keep falling.
On February 6, 2026, a federal judge granted final approval to commission lawsuit settlements from five more brokerages: Howard Hanna, Windermere, Douglas Elliman, United Real Estate, and @properties Christie's International Real Estate.
Combined, these settlements total $39.7 million and cover approximately 2.7 million claims from home sellers.
What Happened
These brokerages followed the path set by NAR's $418 million settlement and the major franchises that settled before them. Rather than fight the lawsuits in court, they chose to settle and move on.
The settlements require the brokerages to implement the same practice changes that came out of the NAR settlement:
- No more requiring listing agents to offer compensation to buyer agents
- Written buyer agency agreements before showing homes
- Commission no longer displayed on MLS
Why This Matters for Texas Agents
If you're a Texas agent, you've already been living with these changes since August 2024. The initial wave of confusion has passed, and most agents have adapted their practices.
But these ongoing settlements signal something bigger: the old commission model isn't coming back.
The industry is moving toward: - More transparent commission negotiations - Buyers more aware of what they're paying - Agents who can clearly articulate their value
What This Means for Your Brokerage Decision
Here's the thing about commission pressure: when buyers negotiate harder on what they pay their agent, your split with your brokerage matters even more.
If you're giving up 20-30% of a shrinking commission to your brokerage, the math gets ugly fast.
Consider a $300,000 sale: - Old world: 3% buyer side = $9,000 - At 70/30 split: You keep $6,300
Now imagine the buyer negotiates you down to 2.5%: - New commission: $7,500 - At 70/30 split: You keep $5,250
That's over $1,000 less per transaction. Multiply that across a year's worth of deals.
Meanwhile, an agent keeping 100% at a flat-fee brokerage: - 2.5% commission: $7,500 - Minus $200 flat fee: You keep $7,300
The gap between traditional splits and flat-fee models widens as commissions compress.
The Bottom Line
These settlements aren't the end. More lawsuits are still working through the courts. The pressure on traditional commission structures will continue.
The agents who thrive will be the ones who: 1. Can clearly explain their value to skeptical buyers 2. Have efficient business models that don't rely on inflated commissions 3. Keep more of what they earn
The old way of doing business is being dismantled one settlement at a time. Make sure your brokerage model is built for what's coming, not what used to be.
Interested in keeping 100% of your commission? Learn about RaiderX broker sponsorship