hard · National Real Estate Exam Practice of Real Estate
The four largest brokerages in a mid-sized metro area, representing a combined 70% of local sales volume, hold an informal dinner where their principal brokers agree among themselves that none of their firms will offer any commission rebate to buyers, citing a shared concern that rebates 'devalue the profession.' Each firm subsequently adopts a written no-rebate policy the same month.
This coordinated conduct among the four brokerages most likely constitutes:
- A lawful trade practice, because each firm independently formalized its own written policy afterward
- Illegal per se price-fixing, because competing firms reached an agreement to eliminate a form of price competition
- A lawful exercise of professional judgment, because devaluing the profession is a legitimate shared business concern
- Illegal tying, because rebates are being conditioned on the use of a single brokerage's other services