Debate Heats up in DC over Real Estate Fee's

Washington, DC -- A U.S. Justice Department official, speaking during a publice workshop Tuesday, used an analogy from the fast-food industry to simplify the federal government's view of competitive issues in the nation's real estate markets:

"(If) When I buy a hamburger, I'm told that I also have to buy French fries...I may not want French fries," said Thomas Barnett, acting assistant attorney general for antitrust at the Justice Department.

"From that perspective, being able to choose from a menu of services--being able to choose what we want to buy--we generally view as a positive thing," he said.

Questions over competition within the real estate industry have prompted Justice Department and Federal Trade Commission officials to take action on a range of matter this year, including suing the National Association of Realtors over its policies for sharing and displaying property information on the internet and investigating state laws that effectively ban real estate rebates for consumers.

Also this year, officials from the FTC and DOJ have opposed state measures, backed by Realtor associations, that have sought to mandate minimum service requirements for real estate professionals, a move federal officials say would restrict consumer choice in real estate services.

Deborah Platt Majoras, chairman for the Federal Trade Commission, said "What we want for consumers is choice," adding that the ultimate goal is to "identify ways to preserve competition while protecting consumers."

In the first panel session, "Overview of the Real Estate Transaction" panelists discussed the role of the Multiple Listing Service (MLS). The MLS is a cooperative organization in which local real estate brokers and agents show properties for sale.

"While MLS's allow brokers to cooperate with one another, there is also the potential to abuse that cooperation by setting rules that could be anti-competitive," said Robert Hahn, director of the AEI-Brookings Joint Center. According to Hahn, "The MLS is essentially a club and its members decide who gets to be in this club."

We will keep you posted on the comments from federal officials and real estate industry leaders regarding this all important workshop for consumers and homeowners.

Thanks to Inman News for their reporting for this article.