Com Com warns Real Estate Network: stop price-fixing

ome 130 real estate offices in the Christchurch region hold shares in the Real Estate Network (REN), which compiles a multi-listing system database of sole agency listed properties for other agents to view.

The selling agent takes 40% of the commission arranged with the vendor.

Only listings that offer a minimum $3000 commission are accepted by REN.

If the 40% commission would be below $3000, a minimum fee of $3000 would be charged.

Commerce Commission director of competition Deborah Battell says the minimum commission provision, or by-law, looks like price-fixing because competitors are in cahoots to control and maintain a price.