Politics Information |
The U.S. Department of Justice vs. the Realty Industry, and Its Effect on Consumers
From the National Association of Realtors' Virtual Office Website policy, to laws and regulations in individual states across the country, the U.S. Department of Justice has been fighting since 2003 what it believes are illegal practices by the U.S. realty industry that harm the American consumer. The issues can be complex at times, but understanding what's going on can be very valuable when buying or selling a home. The Virtual Office Website Policy In May 2003, the National Association of Realtors (NAR) passed their Virtual Office Website policy which allows realtors to selectively exclude their listings from other websites. Later that same year, the U.S. Department of Justice (DOJ) launched an official inquiry into the policy-concerned that the policy could lead to practices which were anticompetitive and monopolistic. Realtors could now, for example, allow fellow realtors access to their listings, but deny access to other competitors who threatened the traditional business model of the realty industry-by undercutting the standard 6% commission, for example. Colluding with competitors in order to stifle others, however, violates U.S. antitrust law. Two years later, the DOJ investigation into the policy is still ongoing. While the NAR has stated publicly that they believe "the opt-out provision is legal and appropriate" and that they would "go to court for as long as it takes," just five days after a May 9 Wall Street Journal report that the DOJ was preparing to finally bring suit in the case, the NAR authorized its leadership to develop a single, uniform policy governing the sharing of its listings. DOJ vs. Local Realtor Organizations While investigating the NAR's VOW policy, the DOJ has also been involved in a number of individual local cases. In March 2005, the DOJ sued the Kentucky Real Estate Commission, challenging their regulation that prohibits Kentucky real estate brokers and sales associates from offering rebates and other inducements to attract customers. The DOJ charges that the regulation violates Section 1 of the Sherman Act by stifling competition and thus restraining trade. Fourteen other states have similar policies. In April 2005, the DOJ sent an official inquiry to the Greater Tulsa (Oklahoma) Association of Realtors on charges of "boycotting"-refusal by traditional realtors to show homes listed by discount realty companies. While the practice is well-known to industry insiders, it's both an antitrust violation and a violation of the realtor's responsibility to their home buying clients. Justice has also weighed in on debates in Oklahoma and Texas, who are considering bills that could eliminate many discount brokerage models by mandating that firms provide some minimum level of real estate services-bills championed by the realtor organizations in each state. Illinois already has passed similar legislation. Effects of DOJ Efforts At the root of all these cases is the issue of collusion. In order to maintain the current realtor-controlled market for home buying and selling, realtors, who are in all other respects direct competitors with one another, agree to "play nice" with other realtors, while at the same time excluding competitors who operate differently. That's a direct violation of U.S. antitrust law. However, while the DOJ has continued to increase its investigations into antitrust behavior by the real estate industry, no suits have actually yet gone to court. The debate has been played out only in the media. Still, even with no concrete results to show for them yet, their efforts have begun to shed light on the issues and to raise some valid questions about how the market works. More and more consumers are realizing that there are other, increasingly viable options for buying or selling a home. And those who still choose to go the traditional route are finding more realtors whose main focus is the customer and not simply the maintenance of a way of doing business. In the long-run competition increases, and increased competition means both lower prices for consumers and also companies who work much harder to bring value to their customers. Realtors who fail to adjust to this new environment will find themselves out of business, but those who are able to best meet the needs of their customers will still find a market rich with opportunity. Buyers and sellers will always need help through the complicated process of buying and selling a home. What is changing is who provides that help and how they do it-all to the benefit of the consumer. Duane LeGate is president of House Buyer Network, one of America's largest networks of home buyers. Since 2002, they have helped more than 45,000 families and individuals who needed to sell a property fast-processing more than $7.5 billion in property during that time.
MORE RESOURCES: Unable to open template $TEMPLATEfilename, exiting |
RELATED ARTICLES
Lost and Found in Gaza The evacuation of Gaza is now completed, and the world has been watching closely. As a proud member of the Jewish People, I have nothing but admiration for the soldiers of the Israel Defense Forces, for the humane way they carried out this most difficult military assignment. More Devastating Than a Nuclear Bomb Despite their signature on the Biological Weapons Convention of 1975, it has been reported that China has the most advanced modern germ warfare arsenal in the world at Xian, Shaanxi province.As proof, information obtained using the Freedom of Information Act shows that in 1997 Clinton administration officials approved supercomputer exports to a known Chinese germ warfare lab without an end use inspection. I am Not an African American I am not an African-American. Don't call me an African -American. Seven Things That Make Me Angry I watch the TV news and I get angry. I really need to quit that. Colonel Boyd on Limited War and Iraq Victory In discussing the OODA Loop theory on Limited War by Colonel Boyd with in the context and patterns of conflict, it appears that we as a nation have forgotten the other options dictated by previous conflicts in the works of von Clauswitz "On War" in that we are disregarding such options and scenarios entirely. In our attempt to move the human race into a different space we are also changing the theory of war in order to do so. Should Farmers Plant GM Terminator Seeds? If a farmer plants the same crop three seasons in a row he might like to have the non-terminating, but if he plants winter wheat and regular wheat he gets paid by the purity as part of his yield and therefore, would prefer the terminating, having no left over seeds growing within his ranks. Also he can plant GM one year when needed for Ethanol and then another type later for another purpose. Starbucks Monopoly Is Starbucks a monopoly? It fits all the definitions. Does this mean the FTC will make them break it up like AT&T? Or is the Federal Trade Commission too chicken after losing the case with Microsoft? The FTC knew better than to go after Microsoft, after all they did nothing wrong except adding features to their operating system and programs. PTO - Patent and Trademark Office needs complete overhaul Recently in Maine, I talked with a gentleman and we discussed at a coffee shop the issues concerning the Patent and Trademark Offices and the slow processing problems with registration of everything from a simple patent or concept patent to a Registered Trademark or Service Mark. Also this past week had an email conversation with a gentleman from NC in a small business regarding weak trademark and service mark case law in several states and at the Federal Level and how that affected him and the owner of a mark in Ohio. Immortality and Mortality in the Economic Sciences Roberto Calvo Macias, a young author and thinker from Spain, once wrote to me that it is impossible to design a coherent philosophy of Economy without accounting for the (sad?) fact that we are mortals. This insight is intriguing. Going All Out to Win a War Conventional warfare is getting to its limits. Soon wars will be fought by robots and on many more fronts, which will render civilization completely immobilized. What is the Filibuster-Breaking Nuclear Option? What is the so-called "nuclear option" that Senator Bill Frist may deploy soon in a precedent-setting attempt to break a potential filibuster? It sounds ominous, but what is it all about, really?President Bush has the opportunity to nominate and fill numerous federal judicial positions this year. Eventually he will have the opportunity to nominate one or more Supreme Court jusices as well. Intelligent Design - Why are the Intelligent So Afraid of It? Why are intelligent people so afraid of the idea that the worlds may have been made by?intelligent design? Is it only a very un-intelligent fear that they may have been wrong? Is mighty science threatened? Or are they afraid that Science will be seen as the bully on the block who met up one night in a dark alley with a huge group of Bible thumping geeks.Perhaps evolutionists should accept a simple three point challenge to help identify their fears. China has the Answer to Environmental Dead Zones Recently scientists have been watching the exponential growth of marine life dead zones off the coasts of human civilizations. In China there are dead zones now, which are over 250 kilometers in radius off the coasts of Shanghai and Beijing. Questioning Both Sides of the GM Crop Debate One question not addressed in GM Crops and Monsanto Terminator Seeds Debate and one which cannot be found in any of the online white papers on the subject is: What is known about Bee Pollination with regards to these things, if the seeding an cross-pollination cannot use the services of the Bees and Butterflies then this too could mean lower yields and thus hurt Monsanto and those which buy certain seeds from certain crops from them as well as feeding the world? And what about Wild crops in some countries that feed people? Would they be slowed due to a larger percentage of Terminating seeds?For anyone to say that a reality based decision such as the decision by the USDA to allow further implementation of Terminating GM Seeds: "flies in the face" is utter International liberal biased rabble rousing by environmental terrorists involved personal agendas and therefore is a bogus notion indeed. So what if flies in the face of public opinion if it is a viable solution? After all what is "public opinion" these days but a mirror of our daily TV intake and newspaper controversy driven sound a fury daily bombardment?Are we going to allow destruction and havoc and future starvation of billions of people based on a minority group with sharp tongues for media sound bites? Or are we as a human race dedicated in the cause of serving mankind and bring him to the absolute fullest potential in this period and set a course to go beyond the perceived possible future of the next period. Make Plastic Out of Corn Here is an interesting thought; Corn to make Plastic An interesting new way to make plastic from corn has been discovered and will be put into process by big chemical companies, which could further erode the Oil prices. And it is of interest that the companies involved in this process are huge, as big as the oil companies they will compete against. The Black Flag Of Anarchy Rational, sober, logical citizens wonder what exactly the terrorists want. What purpose does it serve to fly planes into buildings, kill and maim police recruits by the hundreds, or blow up innocent commuters on mass transit? Such a question carries the assumption that there is a goal hidden beneath the madness. Mommas, Dont Let Your Babies Grow Up to Be Lobbyists For many years now, I have been the proud holder of jobs that my parents found very difficult to explain to their friends. Now, when a well-meaning acquaintance asks "what does your daughter do?" they try to explain that I help people understand how to communicate with elected officials. Delta As you know Delta Airlines is close to bankruptcy. Their income is less than their outgo. Abu Ghraib: Our Surprise is the only Surprise As pictures and videos surface showing young American soldiers humiliating and dehumanizing Iraqi prisoners, we, as a society, recoil in disgust and disbelief. Friends and family of those charged with such crimes, shake their heads in bewilderment and assure the world that the perpetrators are normal, caring, loving individuals without any prior sadistic or bullying traits. The Truth About Power and Absolute Zero Societies have always had a problem of what to do with their young males with high testosterone. In many countries it is important for them to kill off many of them. |
home | site map | contact us |