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.

Wood Dale Chicago prom limo .. Lockport Chicago limo O’Hare
In The News:

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents
Internet browsers are useful, but they can be dangerous. Clicking on malicious links can direct you to dangerous websites that steal information or infect your device.
Apple's latest iOS update introduces advanced artificial intelligence capabilities, which may be capturing and analyzing sensitive information.
Breach site confirmed 56,904,909 Hot Topic users' data leaked online. Tech expert Kurt “CyberGuy" Knutsson says the company's silence makes matters even worse.
Tech expert Kurt “CyberGuy" Knutsson discusses how an innovative Easy-Way kit turns standard strollers electric, simplifying navigation for parents.
Tech expert Kurt “CyberGuy" Knutsson talks about T-Mobile being hacked in broad cyberattack on global phone and internet companies.
Tech expert Kurt “CyberGuy" Knutsson shows you how to add, customize and manage widgets for quick access to apps and info from your iPhone home screen.
Wrong Google searches can not only compromise your device and personal data. They can also bring law enforcement to your doorstep. Hackers are targeting Google searches.
China's Shanghai Kepler Robotics has developed a new humanoid robot that can carry up to 35 pounds per hand for commercial applications across various industries
Checking your hearing has gotten easier with the new hearing test feature in AirPods Pro 2. You can take reliable hearing tests using your iPhone or iPad.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt "CyberGuy" Knutsson explains how a VPN — virtual private network — works and how running it can slow down the operation of your device.
The WalkON Suit F1, an exoskeleton developed to help people with disabilities, can actually walk over to a person in a wheelchair, solving a major problem.
ClickFix, a new scam targeting computer users, is on the rise in the U.S. The scam prompts its targets to click on a link to fix a problem.
Skydweller is the world's largest unmanned solar-powered aircraft that can stay airborne for weeks, and even months, without refueling.
The U.S. government said it is investigating after People's Republic of China hackers targeted commercial telecommunications service providers in the U.S.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Scammers are using increasingly sophisticated ways to lure unsuspecting victims, and some are impersonating an email help desk or support team.
You can unsend or edit your iMessages with the latest iOS updates. Kurt the CyberGuy explains how you can save yourself some potential embarrassment.
Kurt “CyberGuy" Knutsson says there’s been a rise in cybercriminal services using hacked police and government emails to send subpoenas and data requests to U.S. companies.
Kurt “CyberGuy" Knutsson discusses how Axiom Space and luxury designer Prada are collaborating on NASA's Artemis III spacesuit design.
Voice assistants may cause confusion across devices. Tech expert Kurt “CyberGuy" Knutsson offers some solutions to fix it.
Shameless scammers trick veterans into giving personal info or cash. Tech expert Kurt “CyberGuy" Knutsson explores five common scams.
Tech expert Kurt “CyberGuy" Knutsson helps you honor our heroes with these powerful podcasts, audiobooks and documentaries this Veterans Day.

The Revolt of the Poor: The Demise of Intellectual Property?

Three years ago I published a book of short stories... Read More

Does America Get It about Terrorism?

I have to be honest. It is time to come... Read More

Recycling The Mentally Ill

30 years ago, California, later followed by other states, decided... Read More

Market Impeders and Market Inefficiencies

Even the most devout proponents of free marketry and hidden... Read More

Using More Trees to Reduce Atmospheric CO2

As global warming continues to escalate the concerns of today's... Read More

Dole, Kemp, Trusting People

Many in the peanut gallery of society are so quick... Read More

Thinking on Energy

Regarding the de-regulation of energy, this is not such a... Read More

Why One May Not be able to Locate Your Lost Money in the States Unclaimed Property Database

With respect to the States' databases, you may not locate... Read More

The Bush There Or Here Fallacy and the War in Iraq

Today we wish to examine a fallacy, or error in... Read More

A Workable Alternative to Term Limits

The end of another election once again brings into focus... Read More

Problems in the Media

I am noticing an increasing and alarming rate to which... Read More

The History of Trade and Using it as a Weapon for Peace

The Flow of Trade is a major consideration of civilizations... Read More

We Do Not Have An Upside Down Trade Deficit Because We Cannot Compete

Our trade deficit is directly proportional to our attacks on... Read More

The Economic Giant-- A Closer Look at China

IT'S NO LONGER NEWS THAT CHINA IS BECOMING A MAJOR... Read More

Social Security Rant

As the Baby Boomer Generation continue to get older, one... Read More

Banana Republic - United Kingdom

The recent scathing remarks by High Court Judge Richard Mawrey... Read More

Iranian Elections and Boiling Points

The Iranian elections are certainly interesting indeed. The ruling party... Read More

Take Marijuana Off the DEAs Docket

Quit paying the DEA to chase marijuana. We could save... Read More

TSA Missteps at Our Airports

The TSA seems to have completely missed the ball at... Read More

World Moving from Socialism to Capitalism

The recent Jakarta summit of Asia and Africa brought remembrance... Read More

Bush Victory: A Defeat for the Have-Nots?

The shouting is over and directions for the next four... Read More

Anglo-Israelism and the Flesh

Recently a friend insisted that I read a book by... Read More

Accessibility Requirements for Fair Housing

PolicyFederal Fair Housing accessibility requirements for new multifamily buildings should... Read More

For they know not what they do; Federal Regulators destroying business

Federal Regulations on Business Destroy America, these regulations are a... Read More

Illegal Aliens and Homeland Security; Rants from Lance 2003

Is it just me or are you concerned that illegal... Read More

Antigo wedding limo ..