Important Legal Victory (Floorplans) That Strengthens Protections for NAR Members

There was an important legal victory that strengthens protections for NAR’s members thanks to support from NAR’s Legal Action Committee. On Wednesday, the Eighth Circuit Court of Appeals unanimously upheld the district court’s decisions in Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc., et al. and Designworks Homes, Inc. V. Susan Horak, et al., affirming real estate professionals have a “fair use” defense when using floorplans in home listings. 

This ruling confirms that the defendant brokerages and agents used the floorplans without violating copyright law, offering critical clarity and protection for a valuable tool members use to help consumers find the right property. It also sends a strong message that could deter opportunistic litigation targeting our members over floorplan usage. 

Recognizing the mutual benefits of floorplans in home sales, the court’s opinion stated: 

“Putting floorplans in listings for existing Designworks homes makes it less costly for potential buyers to discover the homes' layouts and dimensions, [which] tends to increase the number of potential buyers willing to consider buying the homes. The result is that the homes should, on average, resell more quickly or for a higher price than they would absent the use of floorplans.” 

This case also highlights the strength of our collective efforts. NAR’s support dates back to 2018 when the case was initially before the district court. NAR’s Legal Action Committee immediately recognized the importance of fighting to protect members’, property owners’, consumers’ and the real estate industry’s use of floorplans. As the case progressed through several appeals, NAR also filed three amicus briefs to stress the significant value floorplans offer real estate professionals, home buyers and sellers. Throughout, NAR worked closely with the Columbia Board of REALTORS® to support the defendant brokers and agents.   

Through financial support from the NAR Legal Action Program and NAR’s amicus briefs filed in support of the defendant brokers, these actions demonstrated the value of working together to protect members’ interests. After over six years of litigation, NAR is pleased with the successful outcome.