Click a state on the map to learn about state laws or regulations affecting competition in real estate. Add a Flat Fee MLS Listing in Your Local MLS .

Florida consumers who wish to list their homes on the MLS for a flat fee need to protect their interest and deal with those companies that maintain a Florida brokerage license. Many foreign Flat Fee MLS companies do not maintain a Florida license. Therefore, these companies might be engaging in unlicensed activity in violation of chapter 475, Florida Statutes, since they are soliciting business from Florida consumers/sellers for a fee. Click on the following  link to find out if a company is licensed to perform real estate services in Florida. Search for a Florida real estate licensee.

The following cases stand for the proposition that foreign real estate brokers are not authorized to take in the procuring of buyers and/or sellers for compensation in the state of Florida without first obtaining a Florida real estate broker’s license.

1) Where a foreign broker acting on his own procures a client from his own jurisdiction to purchase property in Florida, he is not entitled to collect a fee. Paris v. Hilton, 352 So.2d 534 (Fla. 1st DCA 1977). In Paris, this court held unenforceable a promissory note given by the Georgia purchaser to a Georgia broker because the note was given as consideration for brokerage services performed in Florida in connection with the sale of Florida land, the Georgia broker not being licensed in Florida

2) However, where a foreign broker, acting as cobroker with a Florida broker, procures a client within his own jurisdiction, the fact that part of his services were performed in Florida will not preclude him from enforcing his contractual right to a fee if he has performed good faith services within his own jurisdiction. Tassy v. Hall, 429 So.2d 30 (Fla. 5th DCA 1983).

3) Where one cooperating broker is under a disability to recover a commission because of being non-registered, this infirmity affects the validity of the entire contract and no recovery is permitted. Harris v. McKay, 176 So.2d 572 (Fla. 3rd DCA 1965).

4) CITE: 502 So.2d 1317 PREVIEWS, INC., a Florida corporation, and Guy Eberhardt, Appellants, v. J.T. MURFF, Sr., J.T. Murff, Jr., and Murff and Company Inc., d b a M-K Ranches, Appellees. … “We do not have a situation where the foreign broker performed good faith services within his own jurisdiction. On the contrary, this foreign broker s activities were directed towards the solicitation of a purchaser in Florida.  The inescapable conclusion is that Eberhardt engaged in brokerage activities in this State within the meaning of Section 475.01(1)(c). Inasmuch as Eberhardt s activities were in violation of the laws of this State, his cobrokerage agreement with the Florida broker does not furnish a basis for the enforcement of a right to a fee for his services. That is, Eberhardt has not brought himself within the above quoted provisions of Section 475.25(1)(h). Were we to hold otherwise, we would, without justification, be providing a way by which Florida brokers could sublet their Florida licenses to foreign brokers. Neither is Previews, Inc. entitled to a fee.”

This matter is before this Court on Plaintiff Vicki V. Busby’s (“Busby”) appeal of the district court’s denial of class certification to a class of plaintiffs seeking damages arising out of Defendant JRHBW Realty, Inc.’s, d/b/a RealtySouth (“RealtySouth”), alleged violation of Section 8(b) of the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C. §§ 2601, et seq. AFFIRMED IN PART, REVERSED IN PART, VACATED AND REMANDED.

On May 26, 2004, Busby, the putative class representative, purchased a home in Jefferson, Alabama, using a federally related home loan. Busby employed a RealtySouth real estate agent who earned a sales commission based on a percentage of the purchase price. This brokerage commission, paid by the seller, was lowered from 3% to 2.5% in order to encourage the seller to accept Busby’s offer. During the closing and settlement, RealtySouth charged Busby an Administrative Brokerage Commission fee of $149 (the “ABC Fee”). The closing attorney is Ms. Busby’s current counsel. He explained the closing documents and the HUD-1 statements to Busby 2 and engaged in discussions with her concerning the transactions.

Initial complaint.
Appeal from United States District Court for the Northern District of Alabama

Source: HUD
New ‘Good Faith Estimate’ will help borrowers save nearly $700
WASHINGTON - For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

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Traditional brokers face increasing competition from fee-for-service brokers who charge only for those services the consumer actually buys. Consumers with the option of choosing a fee-for-service broker can save thousands of dollars by purchasing only those services they need.

A number of states have enacted laws that require consumers to purchase brokerage services they may not want, with no option to waive the extra items. These so-called “minimum service” laws diminish consumer choice and raise the cost of selling a home.

Link: Learn about the laws or regulations affecting competition in your state by clicking here.

Source: National Association of Realtors

On May 27, 2008, NAR and the U.S. Department of Justice reached a favorable settlement, concluding a two-year DOJ investigation (followed by two and a half years of litigation) regarding NAR’s multiple listing policy as it pertained to the display of listings from the MLS on brokers’ virtual office Web sites, or VOWs.

What the settlement accomplishes

The proposed terms (PDF 28K) are a win for NAR, REALTORS®, and consumers, and confirm that MLS members must be actively engaged in real estate brokerage (PDF 32K) by actually helping people buy or sell homes.

This will ensure that MLSs are used for what they were originally intended to do — to help real estate professionals find buyers for people who want to sell their homes. NAR has also agreed to adopt a revised Virtual Office Web site policy (PDF 36K) that NAR will request MLSs to adopt.

Final Judgment Approved - DOJ-NAR (PDF: 743KB)

Final Settlement Details

Cover Letter - Notice of Actions Required by Association Executives and MLSs (PDF: 23KB)

2008 Virtual Office Website Policy (PDF: 109KB)

Model VOW Rules for MLSs (Microsoft Word: 45KB)

Amendment to Section 3 or 4 of Model Bylaws (PDF: 64KB)

Certification Form - Note: Form must be signed (PDF: 86KB)

Frequently Asked Questions (PDF: 65KB)

Flat fee MLS is a term used to describe a practice in the real estate industry in which realtors place pertinent information about a property for sale into the database of the local Multiple Listing Service (MLS) for a set fee or dollar amount as opposed to a commission based on the contract selling price of the property. The seller’s home is essentially listed in cyberspace for a flat fee (i.e. cyberspace home selling).

The arrangement between the real estate broker and the property owner (”seller”) typically requires that the parties enter into an exclusive-agency listing agreement, a listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker. In return, the seller will be required to pay the listing broker a flat fee for his/her limited services provided. This essentially reduces contractual risks between the seller and the listing broker, since the seller is free to sell (or otherwise transfer title to the real property) to any person procured by the seller (i.e. someone who is not represented by a “Buyer’s Broker”) without having to pay a brokerage commission or penalty. The net effect is to limit brokerage services provided, thereby giving the seller greater control and flexibility at significantly reduced costs.

In this instance, the flat fee that the seller pays replaces the much higher listing fee, usually 2.5% to 3.5% of the sales price, that is otherwise paid if the seller were using a full service listing broker in his/her local area. As a result, the seller will not be required to pay the listing broker additional service fees that are typically based on the contract selling price. The seller will, however, be required to pay a cooperating brokerage fee, usually between 1.5 to 3.5 percent, stated as a percentage of the total purchase price. The title agent conducting the closing will be be instructed, pursuant to the purchase and sales agreement (or listing agreement), to disburse any fees due to the cooperating broker.

The listing fee for a “Flat fee MLS” can range anywhere between $99-$699, depending on the area. Real estate brokers have traditionally charged sellers anywhere from 3% to 7% of the contract selling price, which is typically split between two brokers involved in the transaction or two agents/brokers from the same company. MLS Rules require that real estate agents cooperate and pay compensation to any broker who brings them a qualified buyer who is ready, willing, and able to purchase the real property.

Please note: In all cases, where the property is “listed” in the MLS for a flat fee, the seller must offer compensation to a “Buyer’s Agent”, typically 2% to 3.5% of the selling price. This fee is paid to the cooperating broker (or agent) for producing a bidder or purchaser, when the transaction results in a successful sale and closing of escrow of the property.

Variations of limited services and history

• 1 Variations and types of limited service
• 2 History
• 3 Issues affecting the fee-for-service brokerage
  • 3.1 Minimum service laws
  • 3.2 Need to inform the public via written disclosures
  • 3.3 Government involvement in flat fee MLS
  • 3.4 Interest in flat fee listing service to gain price advantages in a down market
• 4 See also NAR’s Code of Ethics
  
• 5 References
• 6 External links
  • 6.1 General Questions on Flat Fee MLS

New Jersey law explicitly prohibits real estate brokers from offering rebates to consumers. New Jersey consumers are unable to benefit from rebates that consumers in other states may receive.

In October 2006, Bill A3567 was introduced in the New Jersey Assembly. Bill A3567, if enacted, would allow brokers to offer rebates in New Jersey.

Learn more about:

• Brokerage services: Discount Brokers Can Make Selling a Home Less Costly
• Rebates: Rebates Make Buying a Home Less Expensive

Related documents on the Internet:

• New Jersey Statute § 45:15-17(k) prohibiting the payment of rebates
• New Jersey Assembly Bill A3567 repealing the ban on rebates

New Jersey Real Estate Commission
realestate at dobi.sate.nj.us
20 W State St; PO Box 328 Trenton, NJ 08625
Phone: 609-292-8300 Fax: 609-292-0944

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Florida law requires brokers to present all offers, but allows consumers to waive that requirement. This written waiver preserves consumers’ ability to choose the brokerage services they want, including MLS-listing-only services or other à la carte services.

Learn more about:

• Brokerage services: Discount Brokers Can Make Selling a Home Less Costly
• Rebates: Rebates Make Buying a Home Less Expensive

Related documents on the Internet:

• Florida Statute Title 32 § 475.278 (2005) requiring brokers to perform minimum services, but allowing consumer waiver

Florida Real Estate Commission
call.center at dbpr.state.fl.us
1940 N Monroe St Tallahassee, FL 32399
Phone: 850-487-1395

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The practice of real estate is governed by state law. Each state has its own rules and regulations enforced by that states real estate commission. Verify your broker’s license by clicking on a state in which your broker offers real estate services.

Alabama Real Estate Commission
arec at arec.alabama.gov
1201 Carmichael Way Montgomery, AL 36106
Phone: 334-242-5544 Fax: 334-270-9118

Alaska Real Estate Commission
sharon_walsh at commerce.state.ak.us
550 W 7th Ave Suite 1500 Anchorage, AK 99501-3567
Phone: 907-269-8197 Fax: 907-269-8196

ARELLO: Association of Real Estate Licensing Law Officials
mailbox at arello.org
PO Box 230159 Montgomery, AL 36123
Phone: 334-260-2928 Fax: 334-260-2903

Arizona Department of Real Estate
info at azre.gov
2910 N 44th St Suite l00 Phoenix, AZ 85018
Phone: 602-468-1414 Fax: 602-468-0562

Arkansas Real Estate Commission
612 South Summit St Little Rock, AR 72201
Phone: 501-683-8010 Fax: 501-683-8020

California Department of Real Estate
2201 Broadway Sacramento, CA 95818
Phone: 916-227-0861 Fax: 916-227-0863

Colorado Division of Real Estate
real-estate at dora.state.co.us
1560 Broadway Suite 925 Denver, CO 80202
Phone: 303-894-2166 Fax: 303-894-2683

Connecticut Real Estate Commission
occprotrades at po.state.ct.us
165 Capitol Avenue Hartford, CT 06106
Phone: 860-713-6050 Fax: 860-713-7243

Delaware Real Estate Commission
melissa.wheatley at state.de.us
861 Silver Lake Blvd Suite 203 Dover, DE 19904
Phone: 302-744-4519 Fax: 302-729-2711

District of Columbia Real Estate Commission
941 N Capitol St SE Washington DC 20002
Phone: 202-442-4400 Fax: 202-442-4528

Florida Real Estate Commission
call.center at dbpr.state.fl.us
1940 N Monroe St Tallahassee, FL 32399
Phone: 850-487-1395

Georgia Real Estate Commission & Appraisers Board
grecmail at grec.state.ga.us
229 Peachtree St NE Suite 1000 Atlanta, GA 30303
Phone: 404-656-3916 Fax: 404-656-6650

Hawaii Real Estate Commission
hirec at dcca.hawaii.gov
335 Merchant St Room 333 Honolulu, HI 96813
Phone: 808-586-2643

Idaho Real Estate Commission
irec at irec.state.id.us
633 N 4th St PO Box 83720 Boise, ID 83720
Phone: 208-334-3285 Fax: 208-334-2050

Illinois Bureau of Real Estate Professions
fpr.realestate at illinois.gov
500 E Monroe St Suite 200 Springfield, IL 62701
Phone: 217-785-9300 Fax: 217-782-3390

Indiana Real Estate Commission
pla9 at pla.in.gov
402 W Washington St Room W072 Indianapolis, IN 46204
Phone: 317-234-3009

Iowa Real Estate Commission
roger.hansen at iowa.gov
1920 SE Hulsizer Rd Ankeny, IA 50021
Phone: 515-281-7393 Fax: 515-281-7411

Kansas Real Estate Commission
krec at krec.state.ks.us
Three Townsite Plaza Suite 200, 120 SE 6th Ave Topeka, KS 66603
Phone: 785-296-3411 Fax: 785-296-1771

Kentucky Real Estate Commission
10200 Linn Station Rd Suite 201 Louisville, KY 40223
Phone: 502-429-7250 Fax: 502-429-7246

Louisiana Real Estate Commission
info at lrec.state.la.us
PO Box 14785 Baton Rouge, LA 70898-4785
Phone: 225-765-0191 Fax: 225-765-0637

Maine Real Estate Commission
carol.j.leighton at maine.gov
35 State House Station Augusta, ME 04333
Phone: 207-624-8515 Fax: 207-624-8637

Maryland Real Estate Commission
mrec at dllr.state.md.us
500 N Calert St. Baltimore, MD 21202-3651
Phone: 410-230-6200 Fax: 410-333-6314

Massachusetts Board of Registration: Real Estate
neal.fenochietti at state.ma.us
239 Causeway St Suite 500 Boston, MA 02114
Phone: 617-727-2373 Fax: 617-727-2197

Michigan Dept of Labor & Economic Growth
bcslic at michigan.gov
611 W Ottawa Lansing, MI 48909
Phone: 517-241-9265 Fax: 517-373-1044

Minnesota Real Estate Commission
general.commerce at state.mn.us
85 East 7th Place St. Paul, MN 55101
Phone: 651-296-4026 Fax: 651-297-1959

Mississippi Real Estate Commission
PO Box 12685 Jackson, MS 39236
Phone: 601-932-9191

Missouri Real Estate Commission
realestate at pr.mo.gov
3605 Missouri Blvd; PO Box 1339 Jefferson City, MO 65102
Phone: 573-751-2628 Fax: 573-751-2777

Montana Board of Realty Regulation
dlibsdrre at mt.gov
301 South Park 4th Floor Helena, MT 59620
Phone: 406-444-2961 Fax: 406-841-2323

Nebraska Real Estate Commission
infotech at nrec.state.ne.us
1200 N Street Suite 402 Lincoln, NE 68509
Phone: 402-471-2004 Fax: 402-471-4492

Nevada Real Estate Division
realest at red.state.nv.us
788 Fairview Dr Suite 200 Carson City, NV 89701
Phone: 775-687-4280 Fax: 775-687-4868

New Hampshire Real Estate Commission
nhrec at nhrec.state.nh.us
State House Annex Room 434; 25 Capitol St. Concord, NH 03301
Phone: 603-271-2701

New Jersey Real Estate Commission
realestate at dobi.sate.nj.us
20 W State St; PO Box 328 Trenton, NJ 08625
Phone: 609-292-8300 Fax: 609-292-0944

New Mexico Real Estate Commission
andrea.armijo at state.nm.us
5200 Oakland Ave NE Albuquerque, NM 87113
Phone: 505-222-9820 Fax: 505-222-9886

New York Dept. of State: Real Estate Professionals
licensing at dos.state.ny.us
84 Holland Ave Albany, NY 12208
Phone: 518-474-4429 Fax: 518-473-6648

North Carolina Real Estate Commission
admin at ncrec.state.nc.us
PO Box 17100 Raleigh, NC 27619
Phone: 919-875-3700 Fax: 919-877-4217

North Dakota Real Estate Commission
ndrealestatecom at nd.gov
200 E Main St Suite 204 Bismarck, ND 58502
Phone: 701-328-9749 Fax: 701-328-9750

Ohio Division of Real Estate & Professional Licensing
repld at com.state.oh.us
77 S High St 20th Floor Columbus, OH 43215
Phone: 614-466-4100 Fax: 614-644-0584

Oklahoma Real Estate Commission
orec.help at orec.ok.gov
2401 NW 23rd Suite 18 Oklahoma City, OK 73107
Phone: 405-521-3387 Fax: 405-521-2189

Oregon Real Estate Agency
orea.info at state.or.us
1177 Center St NE Salem, OR 97301
Phone: 503-378-4170 Fax: 503-378-2491

Pennsylvania Real Estate Commission (Keyword: License PA)
st-realestate at state.pa.us
PO Box 2649 Harrisburg, PA 17105
Phone: 717-783-3658 Fax: 717-787-0250

Rhode Island Division of Commercial Licensing and Regulation
asmith at dbr.state.ri.us
233 Richmond St. Providence, RI 02903
Phone: 401-222-2246 Fax: 401-222-6098

South Carolina Real Estate Commission
parrisa at llr.sc.gov
110 Centerview Dr Suite 201 Columbia, SC 29210
Phone: 803-896-4400 Fax: 803-896-4404

South Dakota Real Estate Commission
drr.realestate at state.sd.us
221 W Capitol Suite 101 Pierre, SD 57501
Phone: 605-773-3600 Fax: 605-773-4356

Tennessee Real Estate Commission
info at state.tn.us
500 James Robertson Pkwy Nashville, TN 37243-1151
Phone: 615-741-2273 Fax: 615-741-0313

Texas Real Estate Commission
admin at trec.state.tx.us
1101 Camino La Costa Austin, TX 78752
Phone: 512-459-6544 Fax: 512-465-3998

Utah Division of Real Estate
realestate at utah.gov
Heber M Wells Bldg, 160 E 300 South 2nd Salt Lake City, UT 84114-6711
Phone: 801-530-6747 Fax: 801-530-6749

Vermont Real Estate Commission
jgriffen at sec.state.vt.us
Heritage Bldg, 81 River St. Montpelier, VT 05609
Phone: 802-828-3228

Virginia Real Estate Board
dpor at dpor.virginia.gov
3600 W Broad St Richmond, VA 23230
Phone: 804-367-8500 Fax: 804-367-2475

Washington Real Estate Commission
realestate at dol.wa.gov
PO Box 2445 Olympia WA 98507
Phone: 360-664-6115 Fax: 360-570-4941

West Virginia Real Estate Commission
wvrec at wvrec.org
300 Capitol St Suite 400 Charleston, WV 25301
Phone: 304-558-3555 Fax: 304-558-6442

Wisconsin Regulation & Licensing
web at drl.state.wi.us
PO Box 8934 Madison, WI 53708
Phone: 608-266-2112

Wyoming Real Estate Commission
bblake at state.wy.us
2020 Carey Ave Suite 100 Cheynne, WY 82002
Phone: 307-777-7141

Territories and Possessions
Virgin Islands
boards at dlca.gov.vi
Property & Procurement Blvd, 1 Sub Base, Room 205 St. Thomas, USVI 00802
Phone: 340-774-3130 Fax: 340-776-0675

Canada
Real Estate Council of Alberta
info at reca.ca
Suite 350, 4954 Richard Rd SW Calgary, Alberta T3E 6L1
Phone: 403-228-2954 Fax: 403-228-3065

Real Estate Council of British Columbia
info at recbc.bc.ca
900 - 750 W Pender St Vancouver British Columbia V6C 2T8
Phone: 604-683-9664 Fax: 604-683-9017

Manitoba Securities Commission English, Français
securities at gov.mb.ca
500-400 St. Mary Ave Winnipeg, Manitoba R3C 4K5
Phone: 204-945-2548 Fax: 204-945-0330

New Brunswick (Goverment of) English, Français
www at gnb.ca
PO Box 6000 Fredericton New Brunswick E3B 1P8
Phone: 506-453-2240 Fax: 506-453-5329

Northwest Territories Municipal & Community Affairs
michael_gagnon at gov.nt.ca
Northwest Tower 6th Floor Yellowknife Northwest Territories
Phone: 867-873-7125 Fax: 867-873-0609

Nova Scotia Real Estate Commission
info at nsrec.ns.ca
7 Scarfe Court Dartmouth, Nova Scotia B3B 1W4
Phone: 902-468-3511 Fax: 902-468-1016

Real Estate Council of Ontario
communications at reco.on.ca
3250 Bloor St W Suite 600 E Tower Toronto, Ontario M8X 2X9
Phone: 416-207-4800 Fax: 416-207-4820

Association des courtiers et agents immobiliers du Quebec English, Français
info at acaiq.com
6300 Auteuil Suite 300 Brossard, Quebec J4Z 3P2
Phone: 540-676-4800 Fax: 450-676-7801

Saskachewan Real Estate Commission
info at srec.ca
237 Robin Crescent Saskatoon, Saskatechewan S7L 6M8
Phone: 306-374-5233 Fax: 306-373-2295