Antitrust Violations
Definition
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Example
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.
Exam Tip
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 Practice Terms
Escrow Account Management
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
Record Keeping Requirements
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
Commingling and Conversion
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.
License Renewal Requirements
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
FREC Disciplinary Authority
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
License Requirements
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Frequently Asked Questions
Test Your Practice Knowledge
Practice with exam-style questions to make sure you can apply Antitrust Violations and other practice concepts.