The Consumer Federation of America — which labeled the traditional real estate industry a “cartel” four weeks ago — is now directing its fire at the state regulatory bodies that oversee brokerage transactions. In a research report scheduled for release last Friday, the CFA said that more than four-fifths of all members of state real estate commissioners nationwide currently “earn a living through real estate transactions,” either as brokers, agents or in affiliated activities such as title agents or real estate closing attorneys. That built-in conflict of interest, in turn, “harms consumers both through omission — what (the regulators) fail to do — and commission — their initiatives that harm consumers.”

CFA’s research found that four states — Idaho, Louisiana, Mississippi and Nevada — require that all real estate commissioners be real estate brokers or salespeople. Another 11 states require that at least 80 percent of commissioners hold real estate licenses. Three states — California, Illinois and Minnesota — have full-time professional regulatory boards, rather than commissioners with industry connections.

click here for article

search for : real estate industry, cartel, consumer, real estate commissioner, real estate broker

bookmark this article to your choice of sites