Real Estate Brokers’ Duties to Their Clients: Why Some States Mandate Minimum Service Requirements

22 Pages Posted: 22 Sep 2010  

Anupam Nanda

affiliation not provided to SSRN

Katherine A. Pancak

University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies

Date Written: September 1, 2010

Abstract

This study attempts to determine why certain states have adopted real estate broker minimum service laws in the United States. The federal government and academic literature assume that such laws were the result of anticompetitive industry collusion and, therefore, serve no consumer protection justification. Using hazard models and state data over 8 years, however, we find that factors reflecting state brokerage influence - strong industry associations and broker membership on licensing boards - do not result in the enactment of minimum service laws. Factors suggesting consumer protection motivations - greater number of complaints against brokers, stricter prelicensing requirements, and a Democratic state legislature - increase the likelihood of law adoption.

Keywords: Housing, Real Estate, HUD, 2010

Suggested Citation

Nanda, Anupam and Pancak, Katherine A., Real Estate Brokers’ Duties to Their Clients: Why Some States Mandate Minimum Service Requirements (September 1, 2010). Cityscape, Vol. 12, No. 2, p. 105, 2010. Available at SSRN: https://ssrn.com/abstract=1680905

Anupam Nanda (Contact Author)

affiliation not provided to SSRN ( email )

Katherine A. Pancak

University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies ( email )

368 Fairfield Road
Storrs, CT 06269
United States
860-486-1275 (Phone)
860-486-0349 (Fax)

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