Editor's note: This article was edited on February 7 to reflect updates made to the version published in the Winter 2024 print edition of REALTOR® Magazine.
Real estate professionals can continue to use floor plans when selling properties, a federal court has ruled. A court ruling upholding the practice is a major victory for the real estate industry, which has long relied on two-dimensional renderings to give potential buyers an idea of a home's floor plan.
A series of lawsuits dating back to 2019 accused real estate agents of violating copyright laws by using floor plans. The U.S. District Court for the Western District of Missouri's ruling clarified that the use of reproduced floor plans falls within the scope of “fair use” and does not violate architectural design copyright law.
“Consumers want this type of information when they start their real estate search,” says Brian Toohey, CEO of the Columbia Board of REALTORS® in Columbia, Missouri. Toohey says many of his members have been nervous about using floor plans because of the lawsuits. “This ruling gives them the ability to incorporate floor plans into their marketing without fear of a lawsuit,” he says.
NAR joins coalition highlighting importance
Real estate groups have banded together to fight the merits of the case, even filing a petition asking the Supreme Court to review the case. In 2022, the National Association of REALTORS® and 17 other organizations, including Clear Capital, CoreLogic, Zillow Group, and American Property Owners Alliance, filed an amicus brief with the Supreme Court justices.
The groups argued that “many homebuyers rely on floor plans listed in real estate listings when deciding whether to purchase a home, and the ability to secure financing for the transaction often depends on an appraisal that requires the production of floor plans. The use of independent floor plan renderings without fear of copyright infringement is important for REALTORS® and homeowners, as well as for purposes such as appraisals, renovations and home sales, the groups said.
The Supreme Court declined to hear the case.
In fact, according to the National Association of REALTORS®'s 2023 Home Buyer and Seller Generational Trends Report, nearly half of home buyers consider floor plans to be a valuable website feature when purchasing real estate online. It states that there is. In fact, nearly 80% of prospective buyers say they're more likely to view a home if it includes a floor plan they like, according to his 2022 research from Zillow.
set a precedent
The federal court ruling stems from a nearly identical lawsuit filed in 2019 by DesignWorks Homes, a custom home design company. The company had claimed copyright infringement against two Missouri real estate agents who reproduced floor plans when selling homes. Designworks argued that the floor plan is an unpublished, award-winning creative work and is therefore entitled to the “fullest extent” of copyright protection. The design firm argued that the broker had not asked for permission to use the design and said releasing a copy of the floor plan would raise privacy concerns for homeowners.
In 2021, the U.S. Court of Appeals for the Eighth Circuit ruled in favor of the architect, stating that the use of free-standing floor plan renderings should not be exempt under federal copyright law. The U.S. Supreme Court declined to review the intermediary's motion to reconsider the case, and the case was sent back to the district court for decision.
The district court's ruling says the architects still have standing to appeal to a federal appeals court, but that the floor plans represent artistic and structural renderings of the home. The intermediaries “failed to copy or publish the designs in order to reduce their marketability,” U.S. District Judge Brian Wymes wrote in the opinion. The purpose of the floor plan is to provide information about the internal layout to prospective home buyers on behalf of the homeowner, who hired a home sales agent, Wymes added.
“Whether or not it is fair use will be determined on a case-by-case basis, but this ruling is beneficial for the industry as a whole, as it is likely that judges will follow this ruling in future cases where similar facts are found,” the securities firm said. Patrick Kuehl of the Limon Law Firm in Kansas City, Missouri, who represented the party, said:
The plaintiffs in this case appealed. Toohey said while the appeal is ongoing, the agency may continue to use the floor plan in marketing under fair use rules.