Farmington Hills, Troy firms charged with restraining competition by limiting availability.
The state's two largest multiple listing real estate services are squaring off with the Federal Trade Commission over allegations of collusion and anticompetitive conduct.
The commission charged Farmington Hills-based RealComp II Ltd. and Troy-based MiRealSource Inc. on Thursday with illegally restraining competition by limiting consumers' ability to use discount brokerage services by not making those listings available to the public. The companies compile lists of homes and properties for sale.
Multiple listing service officials argue they are fully within the law and do not limit anyone's ability to find or sell a home. "I can't imagine that anything could come of this because we're not doing anything wrong," MiRealSource CEO Virginia Bratt said.
MiRealSource bars homes from being listed on its service if the homeowner and broker have agreed to an "exclusive agency listing," an agreement in which a homeowner signs a contract with a broker but retains the right to keep the commission if he or she finds the buyer. RealComp does allow discount brokers to list homes on its service, but the listing can be seen only by brokers, not the public searching the MLS. That doesn't sit well with the feds.
"It's flat-out collusion," said Patrick Roach, deputy assistant director in the FTC's Bureau of Competition. Consumers should be able to choose what kind of service they want to buy from a broker and still have the opportunity to post their home on a multiple listing service, Roach said.
