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Case summaries are provided for educational purposes only, and are not a substitute for legal advice by a licensed attorney in your jurisdiction. Case law may change over time, so be sure to confirm a case is still good law.
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In Asleson v. West Branch Land, the Supreme Court of North Dakota addressed the issue of constructive fraud regarding an MLS listing error in the context of a buyer and seller who were both members of the MLS. The court held that a listing agent has the duty to inform MLS users of errors in a listing and that a user of the service is entitled to rely on the information...
In American Invsco Realty, Inc. v. Century 21, Rohter & Co., the Appellate Court of Illinois reviewed the trial court's confirmation of a Board arbitration award. The appellate court held that Illinois law requires confirmation of an award whenever an application to vacate an award is denied.
American Invsco Realty, Inc. (AIR) was the listing broker for...
In 1981 the Court of Appeals of Ohio addressed whether the drafting of a real estate sales contract by a broker constituted the unauthorized practice of law, thus voiding a contract and relieving the seller from paying a commission. The court held that although the drafting of the contract was the unauthorized practice of law, the broker did not attempt to collect anything for legal services...
In U.S. v. Realty Multi-List, the Fifth Circuit addressed membership criteria in relation to multiple listing services. The court held that the membership criteria of an MLS with market power will be deemed facially unreasonable unless justified by the legitimate competitive needs of the association, and narrowly tailored to that end.
Realty Multi-List (RML) was organized in 1967 by...
Nestle' named Coldwell Banker (Coldwell) as its exclusive agent to find a tenant for its commercial property. After the exclusive listing expired on June 1, 1977, the property was placed on an "open listing." On August 11, 1977, Coldwell, acting in concert with Allen Morris Company (AMC), another brokerage firm, showed the building to Scripto's vice-president for operations,...
In Multiple Listing Service of Jackson v. Century 21 Cantrell Real Estate, the Supreme Court of Mississippi addressed whether a private organization may discipline its members for violations of its standards of professional conduct. The court held that a voluntary association may discipline members, but that before a fine can be levied, there must be a schedule of maximum fines to which each...
In McLain v. Real Estate Board of New Orleans, the U.S. Supreme Court addressed whether alleged real estate commission price-fixing was activity within the scope of interstate commerce sufficient to be challenged under the Sherman Antitrust Act. The Court held that a conspiracy regarding commissions can have the requisite effect upon interstate commerce to confer subject matter jurisdiction....
In McCarrick v. Polonia Federal S. & L. Ass'n, a federal District Court in Pennsylvania addressed alleged violations of 12 U.S.C. section 2607 (section 8 of the Real Estate Settlement Procedures Act of 1974 (RESPA)). The court held that the defendant was not liable for RESPA violations, as the actions taken by the plaintiff's real estate broker constituted services, not kickbacks,...
In State v. Hossan-Maxwell, the Supreme Court of Connecticut addressed list back agreements under the Connecticut State Antitrust Act. The court held that list back agreements constitute tying arrangements, which when coupled with other prerequisites, become per se violations of the Act.
In 1966, Hartnett recorded a "Declaration of Covenants and Restrictions" on parcels of...
In Hilgendorf v. Hague, the Supreme Court of Iowa addressed a dispute between a broker and a vendor regarding the vendor’s breach of a listing agreement. The court held that the vendor had the power, but not the right, to terminate the agreement, and that the broker could recover damages rather than a commission.
Hague owned tracts of land consisting of 200, 160, and 80 acres. In...