Price-fixing warning for real estate network

The Commerce Commission has warned Christchurch real estate co-operative the Real Estate Network Ltd (REN) that its members risk breaching the Commerce Act for price fixing.

REN, which represented the majority of licensed residential real estate agents in and around Christchurch, offered a network listings service allowing member agents to share the details of sole agency properties with other members.

REN passed a bylaw last June introducing a minimum commission provision, under which vendors could only use the network listings service if the fee to the selling agent was 40 per cent of the commission originally negotiated with the listing agent.

A minimum fee of $3000 would apply if the negotiated fee came to less than $3000.

To read the full NZ Herald story click here

Posted: 1 Apr 2009

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