What are the two acts that are prohibited for brokers regarding commissions?

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The correct answer refers to price fixing and market allocation as the two prohibited acts for brokers regarding commissions. Price fixing involves brokers colluding with one another to set a standard commission rate, which reduces competition and can lead to artificially inflated commissions. This practice is illegal as it undermines free market principles and prevents consumers from receiving competitive pricing for real estate services.

Market allocation occurs when brokers agree not to compete in certain areas or with specific customers. This kind of agreement restricts trade and is considered anti-competitive behavior, resulting in a lack of choices for consumers and keeping prices high.

Both practices violate antitrust laws and the ethical standards set forth for real estate professionals, emphasizing the importance of maintaining a competitive market that benefits consumers.

In contrast, the other options refer to practices that either do not accurately capture the nature of prohibited acts in real estate or mix terms in ways that do not align with industry standards for unethical behavior regarding commissions.

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