Home
>
Political
>
The U.S. Department of Justice vs. the Realty Industry, and Its Effect on Consumers

The U.S. Department of Justice vs. the Realty Industry, and Its Effect on Consumers

From the National Association of Realtors' Virtual Office Website policy, to laws and regulations in individual states across the country, the U.S. Department of Justice has been fighting since 2003 what it believes are illegal practices by the U.S. realty industry that harm the American consumer. The issues can be complex at times, but understanding what's going on can be very valuable when buying or selling a home.

The Virtual Office Website Policy

In May 2003, the National Association of Realtors (NAR) passed their Virtual Office Website policy which allows realtors to selectively exclude their listings from other websites. Later that same year, the U.S. Department of Justice (DOJ) launched an official inquiry into the policy-concerned that the policy could lead to practices which were anticompetitive and monopolistic.

Realtors could now, for example, allow fellow realtors access to their listings, but deny access to other competitors who threatened the traditional business model of the realty industry-by undercutting the standard 6% commission, for example. Colluding with competitors in order to stifle others, however, violates U.S. antitrust law.

Two years later, the DOJ investigation into the policy is still ongoing. While the NAR has stated publicly that they believe "the opt-out provision is legal and appropriate" and that they would "go to court for as long as it takes," just five days after a May 9 Wall Street Journal report that the DOJ was preparing to finally bring suit in the case, the NAR authorized its leadership to develop a single, uniform policy governing the sharing of its listings.

DOJ vs. Local Realtor Organizations

While investigating the NAR's VOW policy, the DOJ has also been involved in a number of individual local cases.

In March 2005, the DOJ sued the Kentucky Real Estate Commission, challenging their regulation that prohibits Kentucky real estate brokers and sales associates from offering rebates and other inducements to attract customers. The DOJ charges that the regulation violates Section 1 of the Sherman Act by stifling competition and thus restraining trade. Fourteen other states have similar policies.

In April 2005, the DOJ sent an official inquiry to the Greater Tulsa (Oklahoma) Association of Realtors on charges of "boycotting"-refusal by traditional realtors to show homes listed by discount realty companies. While the practice is well-known to industry insiders, it's both an antitrust violation and a violation of the realtor's responsibility to their home buying clients.

Justice has also weighed in on debates in Oklahoma and Texas, who are considering bills that could eliminate many discount brokerage models by mandating that firms provide some minimum level of real estate services-bills championed by the realtor organizations in each state. Illinois already has passed similar legislation.

Effects of DOJ Efforts

At the root of all these cases is the issue of collusion. In order to maintain the current realtor-controlled market for home buying and selling, realtors, who are in all other respects direct competitors with one another, agree to "play nice" with other realtors, while at the same time excluding competitors who operate differently. That's a direct violation of U.S. antitrust law.

However, while the DOJ has continued to increase its investigations into antitrust behavior by the real estate industry, no suits have actually yet gone to court. The debate has been played out only in the media.

Still, even with no concrete results to show for them yet, their efforts have begun to shed light on the issues and to raise some valid questions about how the market works. More and more consumers are realizing that there are other, increasingly viable options for buying or selling a home. And those who still choose to go the traditional route are finding more realtors whose main focus is the customer and not simply the maintenance of a way of doing business.

In the long-run competition increases, and increased competition means both lower prices for consumers and also companies who work much harder to bring value to their customers. Realtors who fail to adjust to this new environment will find themselves out of business, but those who are able to best meet the needs of their customers will still find a market rich with opportunity.

Buyers and sellers will always need help through the complicated process of buying and selling a home. What is changing is who provides that help and how they do it-all to the benefit of the consumer.

Duane LeGate is president of House Buyer Network, one of America's largest networks of home buyers. Since 2002, they have helped more than 45,000 families and individuals who needed to sell a property fast-processing more than $7.5 billion in property during that time.

green cleaning service Park Ridge ..

In The News:

Take control of your digital privacy with actionable tips like Facebook privacy checkup, location tracking management and data removal services to protect your personal information.

Smart TVs and streaming devices manufactured in China are being compromised by BadBox 2.0 malware before users even power them on; infections have been detected in 222 countries.

The lightweight, 15-pound Tenniix tennis robot mimics pro playing styles like Nadal and Federer, using AI trained on 8,000 hours of professional tennis data.

Oak Ridge's uranium enrichment facility supports America's AI ambitions amid concerns that China's aggressive nuclear reactor construction could give it an edge in powering data centers.

Facebook scam ads now leverage AI and deepfakes to create convincing celebrity endorsements, targeting specific demographics with sophisticated schemes.

Apple unveils iOS 26, macOS 26 Tahoe and iPadOS 26 with translucent Liquid Glass design at WWDC 2025, featuring ChatGPT integration as competitors advance rapidly.

The Atom Touch prosthetic arm combines an AI neural interface with EMG sensors, allowing amputees to control individual fingers with precision at an affordable $25,000.

Aspen officials aim to have crews on the scene within five minutes — something they say would be nearly impossible without precise location data the AI technology gives.

Tech expert Kurt “CyberGuy" Knutsson says iPads are usually secure, but hackers can access them. Spot warning signs early to protect your data.

Tech expert Kurt Knutsson reveals how to easily move photos and videos off your iPhone or Android to securely protect your favorite moments.

The Social Security Administration is launching digital SSN access this summer. Tech expert Kurt “CyberGuy" Knutsson helps you learn how to use it and protect your identity.

Glide underwater with CudaJet and make the ocean your playground. Kurt “CyberGuy" Knutsson discusses the redesigned tech that might be your next big thrilling adventure.

Protect yourself from login alert scams with five security steps, including avoiding suspicious links, checking account activity and enabling two-factor authentication

Skip the usual Father's Day gifts with personalized ideas for tech enthusiasts, home brewers, pool owners, seniors, outdoor lovers and privacy-conscious dads.

DMV text scam alert: Fraudsters impersonating motor vehicle departments nationwide are sending threatening messages about unpaid tickets and tolls to steal your information.

Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.

E-BAR, MIT's mobile robot, provides physical support for seniors with handlebars that follow from behind, helping prevent falls while maintaining dignity for aging adults.

AI is changing everything – now, we can even use it to generate video. I tried OpenAI's Sora and Google's Veo – here's how they measure up against each other.

Five simple phone setting tweaks that make your device work harder for you, from automatic text message deletion to scheduled focus modes.

Android users can save time with 10 simple automations, including automatic battery saver mode, location-based Wi-Fi settings and scheduled "Do Not Disturb" mode.

Personal information from 364,000 people was compromised in a LexisNexis data breach that went undetected for months, highlighting privacy risks.

The Phantom 3500 jet features a windowless design that reduces drag and structural weak points, burning 50% less fuel than conventional business jets.

An Adidas data breach through a third-party vendor exposed customer details like emails and phone numbers, raising concerns about phishing and identity theft risks.

Nurabot, an AI nursing robot, helps Taiwan hospitals address nurse shortages by performing tasks like medication delivery, allowing nurses to focus on patient care.

Tech expert Kurt “CyberGuy" Knutsson says Google has expanded its privacy tool to easily remove personal information from search results.

The U.S. Department of Justice vs. the Realty Industry, and Its Effect on Consumers

Political