A Critical Examination of Broker Minimum Service Laws

Abstract

This paper examines state real estate broker minimum service laws. The United States government has stated that laws requiring brokers to provide a minimum level of specific services are anti-competitive, in that they restrict a broker from customizing services and limit consumer choice. The Department of Justice (DOJ) has compiled a list of states that it claims have anti-competitive minimum service requirements. A critical examination of all state brokerage laws, however, shows that the DOJ list is both incomplete and incorrect. These findings have policy implications for federal agencies, state licensing boards, and academics pursuing further research on whether real estate brokerage is competitive.