realty agency discriminates against discount brokers, legal action?

Question

A local realestate agency does not list any MLS listing on her site the PRMOTES ALL MLS listings that are listed by dicount brokerages. She is by far the biggest agency in my area, accounting for nearly half of all home sale listings. Some refer to it as a monopoly.

Since she promotes that her search engine on her site pulls up all MLS listings, could some one not seek a liability case? I know it is against the law for realtors to intentionally bypass FSBO listings, or dicounted brokerage listings. What is amazing is 95% of these sellers she bypasses in her system ARE OFFERING 3% to a selling agent. The other few are offering 2.5%.

I'm one of those excluded, despite being in the MLS and offering a commission. I had my brother call her agency about my home, they told him "it is not something you would be interested in, trust me!" They have never even seen it! Do I have a case?

Answer 1

This is an interesting question.

If she is advertising that she is allowing searches of all MLS properties and is screening out discount brokers and or lower commission offerings I would think that you could file a complaint against her with the MLS, local board of Realtors (if she is a Realtor), the state regulatory agency for agents/brokers for false advertising. You could contact the federal anti-trust attorney(s) they are always happy to look into real estate brokerages. By the way if they can turn up a antitrust case you get treble damages (if you can show that you were damaged).

Good luck

Answer 2

If the large Broker is a Realtor, she is bound by state law, and the National Association of Realtors Code of Ethics & Standards of Practice which says she will always protect her clients. You are not her client.
"Article 3--REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95)"

As a Realtor, and state licensed real estate broker, she cannot have incorrect information on her website. If she states her website search engine will pull up all listings in the MLS, then she must change the wording on her website if it excludes some listings.

It is not against the law to by-pass FSBO homes for sale, or discounted brokerage firms. The large Broker only needs to cooperate with other brokers if she has a cooperative agreement with them. Realtors agree to cooperate with other Realtors through the MLS system. Whether everyone in your local MLS agrees to cooperate with everyone else depends on the wording of your contract when you began advertising.

You must read your contract. You must contact your local MLS. The large Broker is only in violation if her membership agreement in the MLS system states she must cooperate with everyone else who uses the MLS.

I doubt that the MLS would force brokers to promote homes for sale just because those sellers are using the MLS to advertise.

She should not be telling people over the phone that they "would not be interested in your house, trust me". Technically, I don't think she has said anything disparaging, or derogatory towards you or your home, but it is an unprofessional way to be doing business.

As a Realtor, and as a state licensed real estate broker, she has an obligation to deal fairly with the public but, I don't think she has any obligation to show your house, or promote it in any way unless the MLS system specifically and expressly says she must.

Answer 3

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