Questions answer why real estate license laws should be repealed

Jun. 15, 2007 10:00 AM

Greg Swann -The Arizona Republic

The idea of repealing real estate licensing laws continues to percolate in my e-mail. I think I can make understanding this issue easier. Give a look to these questions. If you answer them honestly, you will understand why the real estate licensing laws should be repealed - even though they won't be.

· In the absence of real estate licensing laws, are consumers more likely or less likely to investigate the education, qualifications and experience of prospective agents?

• In the presence of real estate licensing laws, are new licensees more likely or less likely to equate their status as licensed real estate agents with better-educated, more-qualified, more-experienced agents?

· Taking account that they make profits when they perform their functions well and suffer liabilities when they fail, do free-market oversight entities seem more likely or less likely to assure consumer protection than government bureaucracies?

· The same question on a more practical level: When buying electrical equipment, if you could have government regulation or oversight by the Underwriters Laboratories, but not both, which would you choose?

· In the presence of real estate licensing laws, are free-market oversight entities focusing on real estate transactions more likely or less likely to come into existence?

· In the presence of real estate licensing laws, are alternative business models - radically different from traditional real estate brokerages, but offering consumers more choice and possibly substantial cash savings - more likely or less likely to come into existence?

· In the presence of real estate licensing laws, are traditional real estate brokers more likely or less likely to try to outlaw alternative business models offering real estate brokerage services to consumers for reduced or even no compensation?

· Is there any consumer interest that would not be better served by repealing the real estate licensing laws. I don't think there is any other way to address this issue.