Price fixing occurs whenever competing brokers or firms collude to set, maintain, or stabilize commission rates or service fees. This applies not only to explicit agreements but also to informal understandings or tacit agreements. Real estate commissions are always negotiable between the broker and the client, and no board, MLS, or association can set or recommend rates. A per se violation means the practice is automatically illegal regardless of whether the price is reasonable.
If three competing brokerages in a city agree during a local association meeting that they will all charge a 6% listing commission, they have committed price fixing. Even if one broker merely suggests the idea and the others silently agree, the violation has occurred.
Price fixing is one of the most frequently tested antitrust concepts. Always remember that commission rates are negotiable—any statement suggesting a "standard" or "customary" commission rate is a red flag. If an exam question mentions brokers discussing or agreeing on rates, the answer involves price fixing.
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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