Advanced Practice
Advanced11 min read

Practice of Real Estate: Antitrust, Advertising & Duties

The professional-conduct rules that govern day-to-day brokerage.

The 'Practice of Real Estate' is the largest non-contract national topic. It covers how licensees compete, advertise, handle money, and relate to their brokerage — the rules that keep practice ethical and legal.

Antitrust violations (per se illegal)

Price fixing
Competing brokers agreeing to set commission rates — never discuss rates with competitors.
Market allocation
Dividing territories or customers among competitors to avoid competition.
Group boycott
Competitors agreeing to refuse to deal with a particular party (e.g., a discount broker).
Tie-in arrangement
Conditioning the sale of one product/service on the purchase of another.

Advertising & communication rules

  • Commissions are always negotiable — never imply a 'standard' rate.
  • Avoid discriminatory language; comply with fair housing in all ads.
  • The Do-Not-Call Registry and CAN-SPAM Act limit cold calls and marketing emails.
  • Licensees generally must advertise under their brokerage's name (see Virginia's 2026 advertising rules).

Money & brokerage duties

Commingling
Illegally mixing client funds (earnest money) with the broker's own funds.
Conversion
Using client trust funds for the broker's own purposes — a serious violation.
Independent contractor
Most agents are ICs of their broker for tax purposes but remain supervised for license-law purposes.
Errors & omissions (E&O) insurance
Coverage protecting licensees against claims of negligence in their professional duties.

Antitrust violations are 'per se' illegal — no excuse applies. The Americans with Disabilities Act (ADA) requires reasonable access in commercial/public spaces, a frequent national exam point.

Key takeaways

  • Price fixing, market allocation, boycotts, and tie-ins are per se antitrust violations.
  • Commingling and conversion of trust funds are serious license violations.
  • Follow Do-Not-Call, CAN-SPAM, fair housing, and ADA rules in practice.