Illinois Real Estate Exam Practice Question
The Multiple Listing Service (MLS) board members decided that the population of each area of the city would be best served by the brokerages who have offices actually located within those areas. The board established boundaries dividing the city into six districts and voted to limit listings for each district to only those brokerages with offices within the district. Brokerages who tried to advertise beyond their own district would be prohibited from listing properties in the MLS. This action violates what Real Estate Law?
Correct Answer: C
Rationale: The decision to limit listings to brokerages within specific districts restricts competition, which can violate the Sherman Anti-Trust Act, designed to promote fair competition in the marketplace. By preventing brokerages from operating outside their designated areas, the MLS board effectively creates monopolistic conditions.
Option A, the Civil Rights Act, addresses discrimination in housing but does not pertain to competition among brokerages. Option B, Diversity Jurisdiction, relates to federal court jurisdiction and does not apply here. Option D, the Housing and Community Development Act of 1974, focuses on housing assistance rather than competition in real estate markets.
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