Under Louisiana Real Estate License Law, the LREC has authority to impose disciplinary action against a licensee for various grounds. Which of the following is NOT a recognized ground for disciplinary action under La. R.S. 37:1430 et seq.?
Correct Answer
C) Charging a commission rate that is lower than the industry average in the local market
Charging a commission rate lower than the industry average is NOT a ground for disciplinary action under Louisiana license law. Commission rates are freely negotiable in Louisiana (and throughout the United States under federal antitrust law). The LREC has no authority to discipline a licensee for discounting their commission or charging below a market average. In fact, attempting to fix minimum commission rates would itself be an antitrust violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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