- advertisement -
 
States with minimum-service rules for real estate sales

The movement to impose minimum-service requirements on real estate brokers began in 2004, when Florida and Illinois enacted laws. The campaign accelerated in 2005, when six other states passed laws. It has continued this year, with Indiana and New Mexico adopting new standards.

- advertisement -

The measures captured the attention of federal antitrust lawyers, who in 2005 warned half a dozen states that the bills they were considering were anti-competitive. Of those six states -- Alabama, Michigan, Missouri, New Mexico, Oklahoma, and Texas -- all but Michigan adopted the requirements anyway.

New Mexico was the most recent state to snub the Justice Department.

In November, the DOJ wrote to the state's real estate commission that a proposed minimum-services regulation "would replace customer choice with a regulatory requirement mandating that a broker provide a 'one size fits all' package of services to the customer, whether or not the customer wants to purchase all of them."

The letter cited the aftermath of the similar Texas law: "Afterwards, some Texas brokers who had provided discount real estate services raised their prices and attributed the increase directly to the new law."

Three months later, in February, New Mexico's real estate commission adopted the regulation -- during a meeting in a broker's private office in Las Cruces, 220 miles south of the commission's headquarters in Albuquerque.

States with limited service laws and regulations

Map shows 10 states that have the  minimum service law

Alabama Law passed in 2005 (DOJ letter)
Florida Law passed in 2004
Illinois Law passed in 2004
Indiana Law passed in 2006
Iowa Law passed in 2005
Missouri Law passed in 2005 (DOJ letter)
New Mexico Regulation adopted in 2006 (DOJ letter)
Oklahoma Law passed in 2005 (DOJ letter)
Texas Law passed in 2005 (DOJ letter)
Utah Law passed in 2005
Bankrate.com's corrections policy
-- Posted: April 6, 2006
 
 
More stories by Holden Lewis
 
 RESOURCES
Realtors push minimum-service rules
Bankrate's 2006 real estate guide
Free weekly mortgage newsletter
 TOP REAL ESTATE STORIES
How to lower your property taxes
Forged signature puts kibosh on home sale
Will mortgage assumption solve crisis?
 



Mortgages
Compare today's rates
NATIONAL OVERNIGHT AVERAGES
30 yr fixed mtg 3.95%
15 yr fixed mtg 3.05%
5/1 ARM 3.71%
Rates may include points
RELATED CALCULATORS
  Calculate your monthly payment  
  How much house can you afford?  
  Fixed or adjustable rate: Which is right for you?  
VIEW ALL  
FINANCIAL LITERACY
Rev up your portfolio
with these tips and tricks.
- advertisement -
- advertisement -