BrokerageIndustry News

Debate rages over minimum-service standards in real estate

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Editor's note: This is the first of two stories examining the regulatory crossroads of traditional and new real estate business models. The first story looks at what state agencies are doing to implement minimum real estate service requirements that can impact new business models, and the second story will focus on local policy changes taking place. (See Part 2: Real estate policy changes spark controversy.) It started in Texas, succeeded in Illinois and is under consideration in several other states. There is a piecemeal movement that represents a broader trend to define statewide minimum-service standards for real estate agents, and to distinguish full-service companies from those that are not full service. At the crux of the minimum-service debate is the question of how much service a real estate agent should be required to perform for consumers, and whether it is even appropriate to set such requirements. The rise of alternative real estate business models is a major driver in th...