Tie-In Arrangement
Definition
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
Example
If a listing broker tells a seller, "I will only list your home if you agree to use my brother's title company for the closing," that is a tie-in arrangement. The broker is conditioning the listing service on the seller's purchase of a separate, unrelated service.
Exam Tip
Exam questions on tie-in arrangements often involve a broker requiring clients to use specific affiliated services. The key word is "require"—recommending a service is fine, but mandating it as a condition of doing business is illegal.
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 Tie-In Arrangement and other practice concepts.