Under the Tennessee Real Estate Broker License Act, TREC has broad authority to regulate real estate licensees. Which of the following actions is TREC authorized to take EXCEPT?
Correct Answer
D) Setting the maximum commission rate that brokers may charge for real estate transactions
TREC does NOT have the authority to set maximum commission rates for real estate transactions. Commission rates in Tennessee (and throughout the United States) are negotiable between the parties and are not regulated by TREC or any government agency. Setting commission rates would constitute price-fixing and violate antitrust laws. This is the action TREC is NOT authorized to take.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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.
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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