Conflict of interest for state regulatory commissions
The Consumer Federation of America is on the offensive again, attacking state real estate regulatory commissions for their "blatant conflict of interest." How has this been swept under the rug during the ongoing disputes involving the FTC and DOJ? This seems to be one of those "no-brainer" topics needing to be addressed in order to facilitate fair, unbiased industry regulation. Currently, traditional full-service agents are serving as the lawmakers for almost 70 percent of states across the nation. It’s no wonder why minimum service laws are being created! Commissioners are doing whatever they can to eliminate competition in the form of alternative models like flat fee brokers, arguing the industry is already more competitive than any other. The competition is there in numbers but not in choice. The industry is not "competitive" unless consumers have an opportunity to choose from a bevy of different levels of service. Some consumers may need "full representation" and contract negotiation assistance while others have enough experience to handle all aspects of the transaction short of marketing exposure provided by the MLS. If the rules are created for the benefit of the consumer, give them the gift of choice and let them decide.
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Titled "The Changing Real Estate Market," the comgressional hearing scheduled for July 25, 2006 is going to address the role of the internet on the market, innovative brokerage models (like flat fee MLS and home buyer rebate brokerages), MLS’s, and the effect of minimum service laws. The hearing comes on the heals of a consent agreement between the Austin, Texas Association and the Federal Trade Commission, New Mexico rescinding minimum service laws, the overturning of real estate rebate laws in South Carolina, and the ongoing litigation between the National Association of Realtors and the Department of Justice. Needless to say, the hearing will have a serious impact on the future of the industry. Representatives from NAR, the DOJ, the FTC, the Consumer Federation of America among others are expected to testify.
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New laws make the home listing process more confusing
Minimum service laws have now been passed in over a dozen states across the nation in efforts to slow the evolution of flat fee MLS companies and limited service providers. Even though these minimum service requirements vary from state to state, the result is the same, leaving consumers confused and curious. Laws are requiring listing brokers to disclose which services will and will not be provided, consumers to waive services unwanted, or mandating agents perform specific services. The shameful reality is "we all know the real issue is protecting…the full service agencies from these so called ‘limited service’ providers," as stated by Brian Jones of Century 21. These laws are detrimental to the end user, and not protective of consumers in the least bit - the waters are only muddied with increased paperwork and industry jargon. These dubious laws have gotten the attention of the Department of Justice who is working to determine what effect this will have on the competitive nature of the industry and overall consumer choice. The bottom line is consumers need to be heard!
See Also
New laws make the home listing process more confusing
Minimum service laws have now been passed in over a dozen states across the nation in efforts to slow the evolution of flat fee MLS companies and limited service providers. Even though these minimum service requirements vary from state to state, the result is the same, leaving consumers confused and curious. Laws are requiring listing brokers to disclose which services will and will not be provided, consumers to waive services unwanted, or mandating agents perform specific services. The shameful reality is "we all know the real issue is protecting…the full service agencies from these so called ‘limited service’ providers," as stated by Brian Jones of Century 21. These laws are detrimental to the end user, and not protective of consumers in the least bit - the waters are only muddied with increased paperwork and industry jargon. These dubious laws have gotten the attention of the Department of Justice who is working to determine what effect this will have on the competitive nature of the industry and overall consumer choice. The bottom line is consumers need to be heard!
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