The South Dakota Real Estate Commission has broad authority under SDCL Chapter 36-21A to regulate the real estate industry. Which of the following is NOT a power granted to the SDREC by South Dakota law?
Correct Answer
A) Setting mandatory commission rates that all South Dakota brokers must charge clients
Setting mandatory commission rates is NOT a power of the SDREC and would in fact constitute illegal price-fixing under federal and state antitrust laws. Commission rates in South Dakota are freely negotiated between brokers and their clients. The SDREC has no authority to mandate or standardize the fees brokers charge.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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