In effect, property owners pay all Realtor fees when selling. Most oftentimes the total compensation is a percentage of the sale price when listing a property for sale, and oftentimes one month’s rent when listing a property for rent. A total amount of compensation is decided upon between the property owner and the real estate agent representing them, the listing agent or broker. When considering the Realtor fees for selling a house in Massachusetts, keep in mind that the total real estate commission rate is decided upon before a home is placed in the Multiple Listing Service (MLS). Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court. § 1 Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. P Foley, that tied up Realtor fees with antitrust law and both heightened the scrutiny on real estate agent fees and altered the course of how real estate brokers conduct themselves as it relates to compensation from clients. It was a landmark 1979 lawsuit, United States v. What’s not allowed is colluding among brokerages to use a specific commission rate, in effect, setting prices (commission income) in a market. That said, an individual real estate brokerage can mandate that their agents all charge a certain commission when listing a home for sale, that’s perfectly legal and at the discretion of the brokerage. In essence, real estate buyers and sellers have a choice in who they seek to represent them and the corresponding Realtor fees that they are required to pay for services rendered, and therefore competition exists. Specifically, the Sherman Antitrust Act, dated 1890, which prohibits certain business activities that reduce competition. It comes down to an issue of antitrust law. Naturally, an average will develop over time, yet there is no entity in the US real estate market that dictates or sets real estate agent commission fees. While there may in an anecdotal manner be an average or typical real estate agent commission rate that develops in any given market, there is no single commission rate, Realtor fee, or standard real estate commission percentage rate for real estate agents, brokers, and Realtors and the services that they provide. It’s important for both buyers and sellers to realize that there are no “standard” real estate agent fees that can be charged by a real estate agent or broker. Interested in learning more about how buyer’s agents get paid, visit how much commission do buyer’s agents get paid? No Standard Real Estate Commission Rates
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