Justice Department Expresses Concerns to Tennessee State Legislature on Bill that Would Deny Consumers Cash Rebates in Real Estate Transactions

The following press release was published by the US Department of Justice on May 14, 2007. It is reproduced in full below.

FOR IMMEDIATE RELEASE MONDAY, MAY 14, 2007 WWW.USDOJ.GOV AT (202) 514-2007 TDD (202) 514-1888 Legislation Would Cause Tennesseans to Pay Higher Real Estate Commissions, Department Says WASHINGTON — The Department of Justice’s Antitrust Division sent a letter to the Tennessee House of Representatives indicating that House Bill 2095, would deny Tennesseans the opportunity of receiving cash rebates from real estate brokers when they buy and sell their homes. The Department said that if enacted, the legislation would impede real estate brokers from competing on price and force Tennesseans to pay more in real estate commissions. The Department also noted that the amended legislation would effectively override recent actions of the Tennessee Real Estate Commission that enable brokers to provide cash rebates.

A copy of the Department’s May 12, 2007, letter is attached.

Attached letter 07-356

Source: US Department of Justice