Under the Maryland Real Estate Brokers Act, which of the following is NOT a ground for disciplinary action by MREC against a licensed salesperson?
Correct Answer
D) Negotiating a listing commission rate that is lower than the industry average
Negotiating a commission rate that is lower than the industry average is not a ground for disciplinary action. Commission rates in Maryland are negotiable by law, and there is no minimum commission requirement. Imposing a minimum commission standard would constitute illegal price-fixing under antitrust law. MREC has no authority to discipline a licensee for agreeing to a lower commission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
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