Minimum Service Laws
Consumers may now purchase only those services they actually need or want. Real estate brokers who charge a one time fee (or flat fee) for only those services actually purchased by the consumer are referred to as fee-for-service (limited service) brokers or flat fee mls brokers. These so-called discount brokers make buying or selling a home less costly.
State mandated “minimum service” laws dictate to what extent the full service can be stripped into individual components. Consumers who choose this option can realize savings of up to thousands of dollars. A number of states, however, have enacted laws that require the consumers purchase brokerage services they may not need or 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.
The downside to using a fee for service (or flat fee MLS listing service) business model is that the seller must represent himself in the sale of his property.
It is for this reason that Flat fee Listings may not be suitable for everyone. In any event, the seller might wish to seek competent, qualified legal advice when attempting to sell real property using a flat fee MLS listing service.
- See also: Flat fee MLS
- See also: Consumers Save Thousands
- See also: NAR-DOJ Final Settlement
- See also: Flat Fee MLS or For Sale By Owner?
- See also: Transaction Broker Notice
- See also: Department of Justice study/Consumers Save Thousands