A California real estate broker is suing the National Association of Realtors (NAR) over a policy that forces brokers to pay dues for agents who aren’t members of their state, local or national Realtor associations.
John Diaz, who’s based in Modesto, claims that NAR’s Variable Dues Formula (VDF) policy penalizes brokers for associating with agents who aren’t Realtors. He claims this limits a broker’s ability to compete with larger firms by imposing undue financial pressure that disproportionately impacts small brokerages.
In the charges, Diaz claims that the policy is “an illegal group boycott” that has “no legitimate justification.” He said the result of the policy is “reduced consumer choice, artificial inflation of business costs and market foreclosure for alternative business models in real estate brokerage.”…