Question

A broker has established the following office policy: "All listings taken by any sales associate of this real estate brokerage must include compensation based on a 7% commission. No lower commission rate is acceptable." If the broker attempts to impose this uniform commission requirement, which statement is TRUE

Answer 1

Answer: The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

Explanation:

a. The options to the question are:

homeowner may sue the broker for violating the antitrust law's prohibition against price-fixing.

b. The sales associates of the brokerage will not be

bound by the requirement and may negotiate any commission rate they choose.

c. The broker must present the uniform commission policy to the local professional association for approval.

d. The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

It should be noted that among the rights that are accorded to a broker is for him or her to to set the commissions as long as it is within their own firm.

This is not antitrust violation and any sales associates will be required to comply with the commission as long as the sales associate wish to continue with the broker.