A new lawsuit over antitrust violations in Georgia is stirring up the real estate market.

In north Georgia, a group of real estate sellers has filed a class action lawsuit against real estate industry giants, accusing them of violating antitrust laws.

The plaintiffs, including Janet Phillips, Joseph Hunt, Edith Ann Hunt, Penny Sheetz, Benjamin Aune and Parkwood Living, collectively accuse major market players of conspiring to artificially inflate realtor commissions.

The lawsuit, which strikes at established names in the industry, includes a variety of defendants. Among them are such market giants as the National Association of Realtors (NAR), HomeServices of America, Keller Williams, RE/MAX, Christie's International Real Estate, Anywhere, Compass, Engel & Völkers and HomeSmart.

Significantly, the list expands to include local firms such as Harry Norman Realtors, Ansley Atlanta Real Estate, Atlanta Fine Homes, Solid Source Realty, Palmerhouse Properties, Higher Tech Realty and Hamilton Dorsey Altson Company. Even RE/MAX and HomeServices found themselves embroiled in the dispute, as their local affiliates, including RE/MAX Metro Atlanta and HomeServices Georgia Properties, are named as defendants.

At the heart of the lawsuit is the National Association of Realtors' Rule of Participation, which requires listing brokers to offer a flat fee to a buyer for listing a property on the Multiple Listing Service (MLS). "NAR establishes an anticompetitive market in which sellers are forced to finance the buyer's costs," the lawsuit alleges. "The founders of the conspiracy annually reaffirm NAR's rules, including the Fee Rule, and participate on boards and committees that enforce NAR's rules."

The plaintiffs argue that this regulation leads to a distorted market where sellers are forced to sponsor the buyer's expenses, which in turn inflates the total cost of selling homes.

The lawsuit also criticizes the alleged lack of opportunity for buyers to negotiate their agent's commission. "The rules clearly prohibit negotiation of a buyer's broker's commission for either the buyer or the seller paying the commission," the lawsuit states. "In addition, they do not permit a buyer's broker to submit offers to sellers based on a reduction of that commission."

The studies cited, including the Justice Department's handling of the National Association of Realtors case and the Sitzer/Burnett case, confirm, according to the plaintiffs, a broader conspiracy in the real estate industry. The lawsuit, which contains detailed allegations and a large list of defendants, could shake up the north Georgia real estate market and prompt an overhaul of industry practices and regulation. As the litigation develops, it could change the real estate landscape and draw more attention to long-standing rules on agent commissions.