Practice of Real Estate
This chapter covers the professional and legal standards that govern how licensees conduct business. It emphasizes fair housing, antitrust, advertising rules, and ethical duties to clients and the public. Following these rules protects consumers and keeps licensees in good standing.
Fair Housing
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability. Prohibited practices include steering, blockbusting, and refusing to deal on the basis of a protected class. Advertising must not indicate a preference or limitation based on protected characteristics. Licensees must serve all clients equally and comply with any additional state and local protections.
Antitrust and Fair Competition
Antitrust laws prohibit agreements among competitors to fix commissions, allocate markets, or boycott certain brokers. Commissions are always negotiable and must never be set by agreement among competing firms. Violations can bring severe civil and criminal penalties. Licensees should avoid discussing pricing with competitors and should set fees independently.
Advertising and Professional Conduct
Advertising must be truthful and not misleading, and licensees generally must disclose their licensed status and brokerage. Handling of client funds, confidentiality, and honest dealing are core professional duties. Licensees must avoid the unauthorized practice of law and refer legal questions to attorneys. Ethical, transparent conduct builds trust and reduces the risk of complaints and discipline.
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