DISCUSSING SPECIFIC REAL ESTATE COMMISSIONS ON ACTIVERAIN BLOGS
Antitrust and Real Estate Commissions
Participation in online blogs is networking
BACKGROUND. An ActiveRain post (Members Only) advising against ActiveRain members discussing real estate commissions in your ActiveRain blog generated a number of comments. Some members agreed, some disagreed and some simply weren't aware of the risks associated with online discussion of specific real estate commissions by real estate agents/brokers. One commentator responding to my comment suggesting that we not discuss specific commissions, asked for the source of my opinion. 
SOURCE. One case, United States v. Foley, is, IMO, the most interesting case on point. While some ActiveRain members may say "but we're not agreeing to fix commissions", I don't believe that the law requires specific agreements among real estate licensees to actually fix commissions. The mere discussion may, I believe, put the members who discuss or suggest specific real estate commission at risk.
I don't go as far as one member in stating that any discussion of fees and commissions is illegal. I believe that discussion of specific real estate commissions is where licensees may be at risk. General discussions about different brokerage models, commission versus fixed fees, etc. are, IMO, fine. It's when specific commission amounts are discussed (written about) that we are at risk.
MARYLAND WAS GROUND ZERO. Since I have lived in and/or practice real estate brokerage in Maryland for many years, the matter of price-fixing by real estate brokers is not new. In many ways, Maryland was ground zero for the Department of Justice focus on anti-trust action and real estate brokers.
UNITED STATE V. FOLEY is a good example of why some of us believe that the mere discussion of specific commission rates is risky.
On September 5, 1974, defendant John Foley, the president of defendant Jack Foley Realty, Inc., hosted a dinner party at the Congressional Country Club in Bethesda, Maryland. The guests were nine of the leading realtors in Montgomery County, including each of the three individual defendants and one representative of each of the corporate defendants in this appeal.1 Following the meal, Foley arose and, after making some other remarks, announced that his firm was raising its commission rate from six percent to seven percent. A discussion about the rate change ensued. Within the following months each of the corporate defendants substantially adopted a seven percent commission rate . . . . MORE.
WANT TO GET A COLD CHILL? Read the United State v. Foley and, if you are a real estate licensee who attends business or social functions where other real estate licensees are present, if you hear any discussion about specific real estate commissions, just leave the room.
Sergeant Phil Esterhaus, Hill Street Blues: "Hey, let's be careful out there."
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.
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