The Sherman Antitrust Act prohibits any agreement or conspiracy that unreasonably restrains trade. In real estate, the most common antitrust violations include price fixing, market allocation, group boycotts, and tie-in arrangements. Penalties can include up to $100 million for corporations and $1 million for individuals, along with up to 10 years imprisonment. Civil penalties include treble damages (three times actual damages).
If two competing brokerage owners meet for lunch and agree that neither will charge less than a 6% commission in their market area, they have committed price fixing—a per se violation of the Sherman Antitrust Act.
Antitrust is a heavily tested topic on the exam. Remember that commission rates are always negotiable and never set by any association or group. The key phrase to watch for is any agreement between competitors regarding pricing, territories, or boycotting other businesses. Know that penalties include treble (triple) damages.
Related Terms
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
Frequently Asked Questions
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