Gary Keller Testifies on Broker Commissions In Sitzer Trial

Gary Keller testified in the monumental Sitzer/Burnett trial to distance Keller Williams leadership from 

The brokerage co-founder took the stand in Kansas City to close the second week of the landmark broker commissions suit, Inman reported. Keller’s was the final testimony in the defense’s bid to argue that broker commissions vary and are not set by real estate companies. 

The trial, which is expected to head to closing arguments as soon as Monday before the jury heads to deliberation.

Keller denied in his testimony that a “standard commission” existed, saying agents are responsible for setting their own commissions. He said the company had no say in the commissions charged by agents.

The attorney representing Keller Williams played a video from a company event where Keller showed slides regarding compensation, such as commission negotiations, that the company was “OK with.” Keller replied that slides shown at these events were for “perspective” and didn’t feature anything that could be considered “competitive.”

Keller also revealed that he’s not involved with any Realtor associations personally and said he never discussed the National Association of Reatlor’s cooperative compensation rule before the lawsuit was filed.

In his cross-examination, plaintiffs’ attorney Michael Ketchmark criticized Keller talking up his charitable acts as a way to influence the jury, going so far as to cite a passage from the Bible.

Ketchmark shot back on Keller’s claim that commission rates are unpredictable, showing bar graphs he claimed suggested commission rates would be 3 percent in Kansas City next year. Ketchmark also brought up emails Keller wrote to company executives, including one that said “agents’ commissions are under siege.” Keller refuted the accuracy of that phrasing on the stand, but admitted to writing the email.

Read more

Sitzer/Burnett is the first of two class-action lawsuits revolving around broker commissions to go to trial. The lawsuits related to NAR’s policy requiring listing brokers to offer buyers’ agents compensation in listings on Realtor-controlled MLSs. The plaintiffs argue this violates antitrust statutes and inflates costs.

NAR, Keller Williams and HomeServices of America are defendants in the case brought by a group of home sellers seeking $1.78 billion in damages. 

— Holden Walter-Warner