18. A group of brokers agree that each of them will operate only in a particular market region and that they will all charge the same commission for their services. This agreement is
Answer: D
This agreement is prohibited by antitrust laws.
Such agreements among brokers to operate only in specific market regions and charge the same commission are considered anti-competitive practices and are thus prohibited by antitrust laws.
A) acceptable with the Board of REALTORS® approval.
This option is incorrect because agreements that restrict competition, such as dividing markets and setting uniform commission rates, are not permissible even with approval from any organization, including the Board of REALTORS®.
B) acceptable provided there is disclosure under the RESPA.
This option is also incorrect. The Real Estate Settlement Procedures Act (RESPA) does not allow for agreements that limit competition among brokers, regardless of disclosure. Such practices are against the principles of fair competition.
C) prohibited by the Consumer Credit Protection Act.
This option is misleading. While the Consumer Credit Protection Act addresses issues related to credit and lending practices, it does not specifically govern the behaviors of real estate brokers regarding market division or commission agreements.
D) prohibited by antitrust laws.
This is the correct option. Antitrust laws are designed to promote competition and prevent monopolistic practices. The described agreement among brokers undermines competition by dividing markets and standardizing commissions, which is explicitly prohibited.
Conclusion
The correct answer is D, as antitrust laws are specifically aimed at preventing agreements that restrict competition in the marketplace. Options A, B, and C fail to recognize the fundamental nature of these laws and their application to the practices described, making them incorrect. Thus, the agreement in question is clearly prohibited under antitrust regulations.