Price Fixing
Definition
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Example
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.
Exam Tip
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 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 Price Fixing and other practice concepts.