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Questions and Answers
What do antitrust laws prohibit in the real estate industry?
What do antitrust laws prohibit in the real estate industry?
What is a boycott in the context of antitrust laws?
What is a boycott in the context of antitrust laws?
Occurs when two or more businesses conspire against another business to reduce competition.
What is the definition of brokerage?
What is the definition of brokerage?
The business of bringing parties together, licensed to buy, sell, exchange, or lease real property.
What forms can compensation for real estate brokers take?
What forms can compensation for real estate brokers take?
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What is the purpose of disclaimers on real estate websites?
What is the purpose of disclaimers on real estate websites?
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What is electronic contracting in real estate?
What is electronic contracting in real estate?
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What is the Electronic Signatures in Global and National Commerce Act (e-sign)?
What is the Electronic Signatures in Global and National Commerce Act (e-sign)?
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What does the term 'employee' refer to in real estate?
What does the term 'employee' refer to in real estate?
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What is an independent contractor in real estate?
What is an independent contractor in real estate?
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What is the Internet Data Exchange (IDX) policy?
What is the Internet Data Exchange (IDX) policy?
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What is the role of a managing broker?
What is the role of a managing broker?
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What is meant by a minimum level of services in real estate?
What is meant by a minimum level of services in real estate?
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What does MLS membership provide to real estate professionals?
What does MLS membership provide to real estate professionals?
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Study Notes
Antitrust Laws
- Governed by the Sherman Antitrust Act at the federal level, with each state having its own antitrust laws.
- Prohibit monopolies and contracts that unreasonably restrain trade, ensuring a competitive marketplace.
- Common violations include price-fixing, group boycotts, customer or market allocation, and tie-in agreements.
Group Boycott
- Occurs when multiple businesses conspire against another or agree to withhold patronage to limit competition.
- Considered illegal under antitrust laws.
Brokerage
- The practice of bringing parties together in real estate transactions.
- Licensed brokers can buy, sell, exchange, or lease property for clients and may charge fees for these services.
- Brokers can act as agents for clients or represent themselves differently as permitted by state law.
Commission
- Broker compensation can take forms such as commissions, flat fees, or hourly rates.
- Commission amounts are negotiable and should be agreed upon before representation begins.
- Attempting to impose uniform commission rates violates antitrust laws; brokers can set their minimum acceptable rates.
Disclaimers
- Real estate websites often include disclaimers to clarify that the information provided is for informational purposes only, with no warranties or representations made.
Electronic Contracting
- A growing practice in real estate, facilitating transactions between clients, lenders, and agents via email or fax.
- Aims to save time and money in real estate dealings.
Electronic Signatures in Global and National Commerce Act (e-sign)
- Enacted in 2000 to provide legal validity to electronic contracts and signatures.
- Ensures that contracts created electronically hold the same legal weight as traditional paper contracts.
Employee
- Employers may establish rules concerning working hours, attendance, sales quotas, and dress codes for employees.
Independent Contractor
- Operates with greater autonomy compared to an employee, with less control exerted by the employer over activities.
Internet Data Exchange (IDX) Policy
- Allows all MLS members to equally display MLS data, respecting rights of property owners and brokers to market properties.
Managing Broker
- Also known as the supervising broker, responsible for overseeing real estate professionals within the brokerage.
Minimum Level of Services
- Some states mandate a minimum service level, emphasizing the need for real estate professionals to understand and explain the law to clients.
Multiple Listing Service (MLS)
- Membership provides marketing opportunities for brokers, with rules outlining cooperation terms and compensation sharing in transactions.
Federal Trade Commission (FTC) and Do Not Call Registry
- The FTC manages the registry, which lists telephone numbers of consumers indicating their preference to avoid telemarketing calls.
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Description
Explore key concepts related to antitrust laws in the real estate industry through these flashcards. This unit focuses on the Sherman Antitrust Act and its implications at both federal and state levels. Enhance your understanding of how these laws protect competition and the free flow of goods and services.