A rule adopted by a Christchurch real estate group constitutes price-fixing, according to the Commerce Commission.
The commission has warned members of the Real Estate Network, which represents 95% of Christchurch agents, that they risk breaching the Commerce Act.
The network allows Christchurch agents to share properties through a multiple-listing service. In 2008, it adopted a minimum $3,000 commission fee to be paid by the listing agent to the selling agent.
The commission says the provision constitutes an agreement between competitors that fixes or controls a price. It is also concerned that the arrangement may be at risk of fixing commissions paid by vendors.
The commission says the Real Estate Network has co-operated with its investigation and a warning was considered appropriate.
Real Estate Network chairperson David Rankin says although the ruling goes against the company's own legal advice, it will review the multiple listing service.
