In a lawsuit filed October 16 in the U.S. District Court in Eastern Pennsylvania, broker Maurice Muhammad, representing himself, is suing the National Association of REALTORS® (NAR), the Pennsylvania Association of REALTORS® and the Greater Lehigh Valley MLS (GLVMLS) for $5.6 million over the requirement that he become a REALTOR® in order to be able to access the MLS.
In the filing, Muhammad, residing in Allentown, Pennsylvania, and working at Progressive Realty, claims “violations of federal civil rights statutes, unlawful discriminatory practices, violations of federal antitrust laws, breach of contract, and for creating a monopolistic system that imposes forced membership.â€
“The forced membership requirement imposed by NAR, PAR, and GLVMLS creates a coercive environment that disproportionately affects minority professionals who lack the financial resources to afford mandatory membership fees.â€
Back in August, a trio of real estate professionals in Michigan sued NAR and their own local associations over MLS membership requirements. The legality of restricting MLS access currently depends on jurisdiction, with different federal courts offering conflicting rules.
Factual allegations included in Muhammad’s lawsuit include:
- Defendants have engaged in a pattern of discriminatory practices against minority real estate professionals, including Plaintiff. These practices include selective enforcement of professional rules, inequitable application of disciplinary measures and the exclusion of minority professionals from leadership positions.
- A report by Community Legal Services of Lehigh Valley (CLCV) revealed systemic bias in how real estate transactions involving minority professionals and clients are handled. The report highlights stark disparities in the treatment of minority professionals by Defendants.
- Minority members of NAR, including Plaintiff, have been subjected to unequal enforcement of ethical standards, while similarly situated non-minority members have not faced comparable scrutiny.
- The leadership structures within NAR, PAR and GLVMLS are overwhelmingly non- diverse, leading to policies and decisions that fail to protect minority members or address their specific needs within the profession.
- Plaintiff has been personally subjected to discriminatory treatment by Defendants, including biased handling of complaints and unfair enforcement of membership obligations.
The complaint seeks a jury trial.Â
RISMedia reached out to Muhammad and NAR seeking comment. A NAR spokesperson emailed the following:
“NAR is an organization that represents a broad membership across the United States and deeply values diversity, equity and inclusion. We strongly advocate for fair housing practices and inclusive policies that enable home ownership, and our commitment extends to both the millions of consumers and the real estate professionals who work on their behalf. Concerning the recently filed pro se complaint, NAR has not yet been served but we will prepare a response to the allegations raised as appropriate.â€
