Kevin Sears President | Official website
The National Association of REALTORS (NAR) has announced a significant legal victory following a unanimous decision by the Eighth Circuit Court of Appeals. The court ruled in favor of defendant brokerages and agents in the cases Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc., et al. and Designworks Homes, Inc. v. Susan Horak, et al., determining that their use of floorplans for marketing properties did not infringe on the plaintiff's copyright.
Since 2018, NAR’s Legal Action Program has been involved in supporting this case, which now provides crucial legal clarity for real estate professionals using floorplans as a marketing tool without violating copyright laws.
Kevin Sears, president of NAR, commented on the decision: “This decision represents a significant win for members and the consumers they serve. Floorplans are indispensable tools for agents to market properties effectively and for consumers to make informed decisions during their property search.”
The ruling confirms that using floorplans in property listings qualifies as "fair use" under copyright law. It emphasizes how these floorplans aid buyers in evaluating properties more efficiently, potentially leading to faster sales or higher prices, which can also benefit designers by increasing the value of their work.
The court noted: “Putting floorplans in listings for existing Designworks homes makes it less costly for potential buyers to discover the homes' layouts and dimensions.” This outcome is expected to discourage similar future lawsuits against brokers and agents regarding copyright claims.
The case highlights collaboration between associations; NAR’s Legal Action Committee promptly supported defending consumer rights and industry practices when the case was initially brought before a district court in 2018. As appeals continued, NAR submitted three amicus briefs to stress the implications for real estate professionals and consumers.
Brian Toohey, CEO of Columbia Board of REALTORS (CBR), expressed gratitude: “We have appreciated the support of NAR’s Legal Action Committee and Program throughout this protracted litigation.”
NAR remains committed to supporting state and local counterparts where its efforts can make a positive impact on serving clients better.
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