Antitrust laws, also known as antitrust, play a fundamental role in the real estate market to ensure fair competition and protect consumers. These laws prohibit certain anti-competitive practices by real estate brokers.

Below, we will explore these laws and prohibited practices, as well as one important exception.

1. Practices Prohibited in Antitrust Laws

Antitrust laws prohibit real estate brokerages from engaging in certain anticompetitive practices. Some of these prohibited practices include:

to. Boycott Other Brokerages in the Market

Brokers cannot carry out boycott actions against other brokers in the market. The boycott aims to eliminate or limit competition and is therefore considered an antitrust practice.

b. Market Division to Restrict Competition

Dividing the market to restrict competition is another prohibited practice. This implies that brokers cannot collaborate to limit competition in certain areas or segments of the real estate market.

c. Agreements to Establish Sales Commissions and Management Fees

Brokers may not enter into agreements to set or establish sales commissions and management fees in an anti-competitive manner. Such agreements would limit the ability to compete and are therefore illegal.

2. Crucial Exception: Buyer and Seller Compensation

There is an important exception to prohibited practices in the antitrust laws. This exception refers to “buyer and seller compensation.” This situation is related to the dual representation, where a single real estate agent represents both the buyer and the seller in a transaction.

Buyer and seller compensation is not considered an antitrust violation. Although in eight states in the United States, dual representation is illegal due to potential conflicts of interest, in most states it is legal. States that allow dual representation typically have strict regulations to ensure transparency and protect the parties involved.

Conclusion: Antitrust Compliance

Compliance with antitrust laws is essential in the real estate market. These laws seek to promote fair competition and prevent practices that may harm consumers or restrict competition. It is essential that real estate brokers and professionals know and comply with these laws to ensure fair and ethical transactions.