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.
