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Friday, April 22, 2005

Feds Probes RE Agents For Anticompetitive Practices

Wow. This is interesting.

Feds probe real estate agents
Money magazine investigation shows Justice Dept. looking into anticompetitive practices.


I've wondered why agents are still getting away with charging 6% commission with all the discount brokerages out there. I think there are going to be serious reverberations throughout the industry from this.

5 comments:

Steve said...

Yeah, on top of ...

1. The North Carolina legislation about Sub2's.

2. The Texas legislation about L/O's.

3. The Maryland legislation about preforeclosures.

Lot of interesting stuff happening in the world of real estate these days.

Shaun said...

I've heard about Texas. What's going on with NC and MD?

Steve said...

North Carolina - Something to do with Sub2's and lender approval. I believe I caught the story on the main forum at CREOnline.com.

Maryland - I think this legislaion passed, but not sure. It had something to do with people who've had their homes taken from them while in preforeclosure by investors. They have something like 12 months (I can't remember exactly) to get back 80% of the profit (I can't remember if it was 80% or something else).

Posting this response, I see I really have memory skills that need polishing. :-/

Andviv said...

Check this one out about MD:

http://www.realestatecng.com/Discussion/DiscussionAdd.cfm?response=18843
http://www.realinvestors.com/forums/read.php?f=1&i=5086&t=5086

Basically, they are killing the preforeclosure business in MD.

If you are in preforeclosure and I come to help you, buy your property at a discount and then sell it before 1 (or is it 2?) year then you, the "seller" get 80% of the profit.

Given that circumstances I would not buy a property in preforeclosure, just would wait for it to be repossesed and they buy as a REO. This would bring many homeowners to foreclosure with nobody there willing to help them and they would get their credit screw for the next 10 years or so.

Shaun said...

Wow. Yeah, that Marylaw law will really kill the preforeclosure business. I'm sure the intent was to stop scammers, but all this is going to do is cause more houses to go to the foreclosure auction and more people will have foreclosures on their credit history. This bill will hurt those it is trying to help.

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