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Contributed by mm | July 18, 2005 5:17 PM PST
This is blatant anti-competition in the disguise of law.
From Wall Street Journal:
About 15 states ban or restrict rebates. Iowa's Legislature recently amended its real-estate laws to ban rebates involving referral services like Lending Tree. "We're going to get very aggressive about knocking them out of the state," says Martin Lee, chief executive of the Iowa Association of Realtors. Many Realtors don't want third parties such as LendingTree to grab a slice of the commission.
Now, traditional Realtors and discounters are beginning to trade punches over advertising claims. Realty Select Inc., a discounter in Lancaster, Pa., recently ran an ad estimating that traditional agents might earn $1,000 an hour for selling a $300,000 home at a standard commission. That ad and others like it prompted Coldwell Banker Homesale Services Group to file a complaint with the Lancaster County Association of Realtors, charging Select Realty with breaching the association's code of ethics. (Coldwell Banker is a franchise system owned by Cendant Corp., New York.)
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