Real Estate Unit 8

Virginia

Antitrust Laws

Are federal and state regulations, primarily the Sherman Act, Clayton Act, and Federal Trade Commission Act, designed to promote fair competition, prevent monoplies and protect consumers from anti-competitive practice.

Boycott

An illegal antitrust violation where two or more competitors (e.g. brokers or agents) conspire to exclude, refuse to deal with, or restrict another business, such as a discount brokerage or specific vendor.

Brokerage

A firm or business where licensed real estate agents work under a sponsoring, high-level broker, facilitating the buying, selling, leasing, and management of property for clients, providing essential support like training, marketing, and legal oversight in exchange for a share of commissions.

Code of Ethics

A set of standards requiring members to act with integrity, honesty, and fairness, protecting the public and fellow professionals by emphasizing duties to clients, the public, and other agents, covering transparency, confidentiality, fair representation, and preventing misrepresentation, ensuring high professional standards beyond basic law.

Commission

The fee paid to agents for successfully completing a property sale, usually a percentage (like 5-6%) of the final sale price, is split between the seller’s and buyer’s agents and their brokers.

Employee

Represents the legal entity, including personal representatives, beneficiaries, or heirs, that receives an employee’s final compensation, benefits, and entitlements (such as unpaid salary, bonuses, and unused leave) upon their death.

Independent Contractor

A licensed agent or broker who operates their own business, controlling how they work, sets schedules, and finds clients while contracting with a brokerage for managing transactions.

Manager Broker

A licensed professional responsible for supervising day-to-day office operations, training agents, ensuring legal compliance, and managing transaction documents.

Multiple Listing Service (MLS)

A private, cooperative, and regional database of real estate properties for sale, created and used by licensed brokers to share information, find buyers, and manage commission splits.

Price-Fixing

An illegal agreement between competing brokers or agents to set, raise, or stabilize commission rates, fees, or service prices, rather than letting them be determined by free-market competition.

Procuring Cause

Defines the broker or agent who initiates an uninterrupted series of events that directly lead to the successful sale or lease of a property.

Ready, Willing, and Able Buyer

Is a qualified, motivated, and prepared purchaser who has the immediate capacity to enter into a binding contract and complete the purchase of a property under the seller’s terms.