The U.S. Court of Appeals for the Third Circuit has affirmed the dismissal of a 2025 antitrust lawsuit against the National Association of Realtors, the Pennsylvania Association of Realtors, and the Greater Lehigh Valley MLS.
Eastern District of Pennsylvania Judge Joseph Leeson dismissed Progressive Realty broker-owner Maurice Muhammad’s lawsuit last July, which claimed that NAR’s three-way agreement created a “monopolistic system” that agents and brokers must join, or lose access to Realtor-affiliated multiple listing services.
Muhammad also levied federal civil rights claims, stating that national, state and local associations provide little value to minority agents and brokers, while often overlooking their concerns.
Maurice Muhammad
“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,” the complaint said, according to a previous Inman article. “Defendants have used their monopoly over MLS services to prevent the creation of alternative trade organizations, thereby stifling competition and reinforcing their control over the real estate profession.”
Muhammad sought $5.6 million in damages alongside several policy changes, including the removal of the three-way agreement and additional processes to “ensure equitable treatment of all members.”
However, the Court said Muhammad’s complaints were unsubstantiated, and when given the opportunity to file a second amended complaint, the broker failed to provide evidence. Judge Leeson dismissed the lawsuit with prejudice, permanently barring Muhammad from refiling the complaint. The broker-owner immediately filed an appeal in August — but didn’t follow the Court’s requests to file the required brief and appendix.
An NAR spokesperson said the trade group is “pleased” with the decision.
“NAR’s policies foster competition and are not discriminatory,” the spokesperson said in an emailed statement. “The Association’s integrated structure is essential to the value we provide our members, including a unified voice on policy issues, a uniform Code of Ethics, and important tools and professional development opportunities that help members get to their next transaction with more confidence.”
The conclusion of Muhammad’s lawsuit comes roughly a month after a Texas judge dismissed broker Luz de Amor Eytalis’s three-way agreement suit against NAR, the Texas Association of Realtors, the Wichita Falls Association of Realtors and the Wichita Falls Association of Realtors MLS.
The trade group has also tallied victories in Louisiana, North Dakota, Illinois and Michigan. Amid the barrage of lawsuits, NAR repealed a rule that required membership to access multiple listing services, allowing local Associations to decide on MLS access. Still, the group stood firm behind its three-way agreement.
“Some of you have heard rumblings of the challenging of the three-way agreement,” NAR CEO Nykia Wright said in a previous Inman article. “Well, we are here to make sure that those rumblings subside because it is our duty to make sure that people understand what happens at the local level, the state level and the national level, and really make sure that people understand that there isn’t a cannibalization of services, but it really is working together … to make things work.”
