What is the primary antitrust concern that led to the NAR settlement?
Correct Answer
B) Cooperative compensation allegedly inflated and standardized commission rates
The claim was that routing offers of compensation from listing brokers to buyer brokers through the MLS kept commission rates uniform and stopped buyers shopping on price, which is a restraint of trade under 15 U.S.C. § 1. Other choices: the case was not about the level of home prices; nobody argued too few agents existed, and the complaint was about how the agents there were got paid; and no multiple listing service required sellers to accept one standard rate, which is what makes that option tempting and wrong. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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