New Mexico rescinds anti-competitive rules

Against heavy objection from the Department of Justice in February, New Mexico passed a rule requiring all brokers in the state to accept and present all offers to their clients. This rule effectively prohibits some forms of limited service companies that do only MLS entry. The New Mexico Real Estate Commission has now voted unanimously to rescind the rule. Such rules - that reduce and/or prohibit consumer choice in the real estate transaction - have been strongly opposed by both the Department of Justice and the Federal Trade Commission. The pressure finally seems to be making a difference in the industry. In just one week both the Austin Association and the New Mexico Commission have changed rules designed to eliminate flat fee MLS and other limited service providers. The DOJ cited the lack of consumer complaints against fee-for-service providers in questioning the validity of the minimum service rules. New Mexico has now created a task force to study the issue since it is a national issue.

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