list with me would be considered an illegal statement and a violation of the

List with me would be considered an illegal statement

This preview shows page 15 - 18 out of 24 pages.

list with me" would be considered an illegal statement and a violation of the Act, since brokers cannot get together and set rates. Making a statement that a broker charges more commission than another or that a broker offers a discount commission could also violate this rule as brokers charge the commission that they need to meet their own business plan. There is NO standard commission in real estate! Group Boycotts - Licensees of different companies should not agree to boycott a company because of the company's business practices. For example, a group of brokers boycott a discount broker because the discount broker has lower rates. This is illegal . Division of markets by location or price - Dividing up the town either geographically or by price range is a violation of law. Giving ABC all of the north side while XYZ takes the south side is a violation of law as is ABC taking all the listings of below $200,000 and XYZ all the listings above. Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to $10 million for corporations and a fine of up to $1 million or ten years imprisonment (or both) for individuals. All business must be allowed to flow freely in an open market. Click here for more information on:
Image of page 15
The Clayton Act and the Sherman Anti-Trust Act End of Page 20 . Kickbacks Kickbacks are difficult to manage and document. Brokers can, under some circumstances, receive kickbacks from providers outside the transaction as long as the buyer and seller are informed of the kickback . A referral fee from a carpet company would be an example of a legal kickback. In other situations, a broker seeking a kickback from a title company, or mortgage provider for referring and closing a property with their particular company is a violation of the federal Real Estate Settlement Procedures Act (RESPA) . As a result of the Dodd Frank Wall Street Mortgage and Consumer Protection Act of 2008, RESPA oversight was transferred from the U.S. Department of Housing and Urban Development to the Consumer Financial Protection Bureau (CFPB). Kickbacks are legal only under limited conditions: All parties to the transaction must be fully informed of the kickback. The kickback must not be prohibited by other law (such as the Real Estate Settlement Procedures Act). The commission may be shared with an unlicensed seller or buyer of the property sold with lender approval. NOTE: It is unlawful for a licensee to pay any fee to an unlicensed individual for performing the services of real estate. Click here for more information on: Consumer Financial Protection Bureau End of Page
Image of page 16
Image of page 17
Image of page 18

You've reached the end of your free preview.

Want to read all 24 pages?

  • Fall '16
  • Corporation, Types of business entity , Real Estate

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture