Minimum service laws

 Minimum service laws
One of the current issues affecting a property owner's ability to select individual real estate brokerage services from a fee-for-service broker, such as flat fee MLS listing, is the imposition in certain states of "minimum service laws". These laws require real estate professionals entering into exclusive service provision agreements with their clients to provide a state-mandated minimum service package that includes many of the duties associated with negotiating a property sales contract.

In some States, such as Texas, these laws have already been passed. New Mexico's Real Estate Commission passed a similar set of rules for real estate brokers in that state, but rescinded them after pressure from the Department of Justice.

Termed as "anti-competitive" by the Federal Trade Commission, these laws have come under scrutiny by the United States Department of Justice. Citing a lack of proof of any harm to or complaints from consumers or any calls from consumer groups for such stricter regulation of the industry in this regard, the DOJ says these laws tend to require real estate brokers to charge more for their services and restrict choices for consumers.

Critics of minimum service laws claim the effect and intent is to protect traditional commission fees. And by forcing consumers to purchase services they may not want or need, these laws actually harm the public. Proponents argue that requiring a minimum level of service insures uniformity within the industry and protects property owners from being taking advantage of by unscrupulous buyer's agents.

 Avar Realty is part of the Help Me Sell Network. Our Help Me Sell website is Http://huntsville.helpmesell.com  We abide by all Alabama Real Estate Commission laws and guidelines.   We cooperate fully with all real estate professionals.   Member of the Chamber of Commerce, National Association of Realtors and North Alabama MLS Service.