Which act prohibits real estate brokers from establishing fixed commissions?

The Sherman Antitrust Act is significant because it was designed to promote competition and prevent monopolistic practices in various industries, including real estate. Specifically, the Act prohibits agreements or collaborations among real estate brokers or agents that would lead to fixed commissions or price-fixing strategies. Such practices can undermine competition and lead to higher costs for consumers. By preventing fixed commission structures, the Sherman Antitrust Act fosters a competitive marketplace where brokerage fees can vary based on services rendered and other market conditions, ultimately benefiting consumers by allowing them to negotiate better terms.

The other acts mentioned primarily address different areas of real estate regulation. The Real Estate Settlement Procedures Act (RESPA) focuses on disclosures and practices related to settlement costs, while the Fair Housing Act addresses discrimination in housing. The Truth in Lending Act pertains to disclosure requirements for credit terms and conditions. None of these acts specifically address the establishment of commission rates among brokers in the manner that the Sherman Antitrust Act does.