Marcus & Millichap Wins 'Turf State' Lawsuit

ENCINO, CA-Marcus & Millichap has won a federal lawsuit that has far-reaching consequences for the commercial real estate industry in “turf states” that prohibit brokers in those states from cooperating with brokers who are not licensed in the state. Marcus & Millichap’s suit challenging Kentucky’s turf state regulations was filed in the US District Court for the Western District of Kentucky, which has ruled that Kentucky’s turf state laws are unconstitutional.

Harvey Green, Encino-based president and chief executive officer of Marcus & Millichap, tells GlobeSt.com that the court’s ruling “is much bigger than it might first appear” in terms of its impact. Although the suit challenged the Kentucky law, the court’s ruling could affect the seven other states with similar laws because the ruling “talks about the portability of licenses on a national basis, especially in the commercial markets,” Green points out.

Green explains that the turf states were watching the Kentucky case very carefully. “Since we have had a favorable outcome, I think that will affect what the real estate commissioners and attorney generals do in these other states,” the Marcus & Millichap president says.