West Virginia Real Estate Commission Permits Brokers to Offer Rebates, Other Discounts In response to a Department of Justice antitrust investigation, the West Virginia Real Estate Commission has rescinded a regulation that prohibited West Virginia real estate brokers from offering rebates, inducements and other discounts to consumers. The Department said that abolishing the regulation will enable consumers to receive the full benefits of competition—lower prices and better services.
The panel voted to repeal the rule to permit real estate brokers to offer rebates, inducements, gifts and other discounts immediately. By state law, the amended rule took effect May 4.
“Rescinding the regulation is a good result for consumers in West Virginia,” says Thomas O. Barnett, assistant attorney general in charge of the Department’s Antitrust Division. “Consumers in West Virginia can expect to benefit from increased competition through broker-offered rebates, incentives and discounts. The Antitrust Division is pleased that the Commission, like the real estate commissions in Kentucky and South Dakota, took quick action to address the competition issues raised during the Division’s investigation.”
Jarrett R. Hall, broker of RE/MAX Real Estate Professionals in Morgantown, West Virginia, believes the decision to rescind the regulations is a good one as well.
“Our hands were sort of tied under the old regulations,” Hall says. “This will now help bring the regulations into the 21st century. It will also make things more competitive.”
While Hall doesn’t believe that the changes will have a major impact on pricing or structure, he agrees that they will affect consumers.
“It will affect consumers, but by how much depends on each property,” says Hall. “Not everyone will get a break. It will really depend on the individual buyers and sellers. However, it will give agents more latitude. These changes will certainly help.”
In August 2005, in response to an investigation by the Antitrust Division, the South Dakota Real Estate Commission rescinded two rulings that prohibited South Dakota real estate brokers from offering rebates, inducements and other discounts to consumers. In March 2005, the Department filed a lawsuit against the Kentucky Real Estate Commission challenging the Commission’s regulations that prohibited Kentucky real estate brokers and sales associates from offering rebates and other inducements to consumers.
In July 2005, the Department reached a settlement with the Kentucky Real Estate Commission that resolved the Antitrust Division’s competitive concerns. The Division continues to examine competition issues in the real estate brokerage service industry.
—Stephanie Andre |
