From: Jay Reifert [true-agents@true-agent.com] Sent: Friday, February 08, 2002 2:45 AM To: Oppose the WRA--Defeat Designated Agency Cc: Attorney General James Doyle (Re: Anti-Trust); FTC Anti-Trust Division; Anti-Trust; Assistant Attorney General Subject: Conspiracy--Wisconsin Realtors Association Conspires Against Membership/Public to Restrain Trade [This message is going out to thousands of Wisconsin Realtors, almost 500 governmental officials--including all State Legislators and their respective staffs, the Governor of Wisconsin and most candidates for Governor of Wisconsin, the Attorney General of Wisconsin, over 425 Consumer Advocacy Groups and/or individual Consumer Advocates, over 285 Registered Wisconsin Lobbyists and over 190 Media Outlets.] ----------------------------------------------------------------------- PLEASE forward this message to everyone you can and please also print it out--and distribute--to those who you know that don't have email capabilities.] ----------------------------------------------------------------------- List Removal Instructions: Reply to this Message With "Remove" in the Subject Line or Body of the Message. Governmental Officials and Their Respective Staffs Will Not Be Removed From This List. ---------------------------------------------------------------------- Conspiracy--Wisconsin Realtors Association Conspires Against Membership/Public to Restrain Trade or Putting the 'Wisconsin Realtor' Back in the Wisconsin Realtors Association ----------------------------------------------------------------------- [This message has been cc'd to the Anti-Trust Division of the US Department of Justice, the Federal Trade Commission and the State of Wisconsin Attorney General for investigation into possible Anti-Trust violations by the Wisconsin Realtors Association.] -------------------- What do you call it when a group of competitors who have real marketplace power get together behind closed doors, devise and promote a plan that will limit competition while enhancing their corporate bottom lines and depriving consumers of their constitutional rights all at the same time? Well, in my opinion that would at the very least be an unspoken agreement to restrain trade, if not an overt violation of federal and state anti-trust laws. Twice now, the Wisconsin Realtors Association has engaged in just such activities. First, in the early '90s, where their privately nutured legislative initiative led to the Agency "Reform" Act of 1994. As a result of that legislation, competition was limited in the State of Wisconsin by reducing all licensees in the state to the legal status of facilitators, thereby robbing Wisconsin home buyer and seller clients of the rights and protections that they were previously due under the law and simultaneously making it harder for small brokerages to compete with the huge advertising budgets of state Mega-Brokers. This time around, the issue is Designated Agency and, while on the surface it could appear to some to be a reasonable proposition, below the surface it is just as anti-competitive, deceptive and bad for Wisconsin home buyers and sellers and small real estate offices as the Agency "Reform" Act of 1994, with the addition of a layer of hypocrisy to top it off, as there is no need to place another "Agency" scheme over what Wisconsin currently has, as current law prohibits true agency in the first place! You see, while the common law of agency provided the home buying and selling client with the highest standard of service known under the law, Wisconsin's laws benefit large real estate companies by allowing them to give lip service to agency, while creating an artificial legal concept that will allow them to put together the deal at the expense of one or both clients in the same transaction. Under the common law of agency, such a loophole does not exist, as both licensees of the same firm in the same transaction would be prohibited from putting the interests of either client ahead of the other thus extending protection to the clients from a broker's incentive to deal at their expense. The liability all accrues to the company that practices dual agency. Under Designated Agency, that liability disappears entirely, removing the protections that the clients formerly had from firms who would attempt to put the deal together at the expense of one, or both, clients. So, how can it be that such a thing would stand a snowball's chance in Hades of being promoted? Quite simple. A concept like Designated Agency, while it has pitfalls for the individual licensees who practice it, offers the large firm a way to blur the difference between them and licensees who practice exclusive buyer agency and exclusive seller agency. In fact, according to Rick Staff, General Counsel of the Wisconsin Realtors Association, once Designated Agency is passed, there will be no difference between a Designated Agent and an Exclusive Buyer Agent or Exclusive Seller Agent. (Not true...but his assertion nonetheless.) The Wisconsin Realtors Association functions as a cartel. It, by virtue of the way it is governed, has full control placed in the hands of firms who will benefit from the anti-competitive aspects of the deceptive anti-consumer legislation that they are proposing. Of the 32 Members of the Board of Directors of the Wisconsin Realtors Association, 2 Directors are from Affiliated Industries and, therefore really do not count. The 30 that are left break down as follows. 1 Director comes from an office that has a mere four associates. 4 Directors come from offices that have from 9 to 13 associates. 4 Directors come from offices that have from 28 to 46 associates. That is 9 Directors out of 32 who come from small to medium sized offices. ----------------------------------------------------------------- Now, for the tragedy. 21 Directors come from companies that would be considered mega-brokers. Powerhouses of their marketplaces, these firms when they act in concert--as they are with concept of Designated Agency--have the ability to limit competition in the marketplace in the State of Wisconsin. Of the 21 Mega-Broker Directors: 4 come from 2 office firms. 5 come from a 4-6 office firm. 3 come from a 9-10 office firm. 4 come from an 11-15 office firm. and 5 come from a 25-37 office firm. The Mega-Broker voting bloc is 21 members strong, on a Board that only requires a majority of 17 to have its way. In reality, any office that is over 15 associates in strength, is likely to benefit from the ability to (ab)use Designated Agency, which means that the bloc that would be likely to vote for the concept is probably closer to 25 Directors. This means that the small brokerage shops, which do not benefit from Designated Agency in the way that larger offices do, has no ability whatsoever to keep the WRA from engaging in the promotion of Designated Agency as the potential representation that they have on the Board is a mere 5 seats. Further, these Directors are constrained by WRA By-Laws, from speaking out against the Association if they disagree with the policy. What this means to you small brokerage shops is that, even though you pay your dues, the WRA is set up in such a way as to remain firmly in the control of the Mega-Brokers and/or the Director Agents who have fiduciary responsibilities to them, as agents of a Mega-Broker firm. Your voice does not count. This issue, while truly being damaging to Wisconsin home buyers and sellers, is equally damaging to you, as it gives an anti-competitive tool to the Mega-Brokers to siphon away business from you. Their goal is to make us all the same under the law, so that s/he who has the bigger advertising budget wins. Don't despair yet, though, small brokers and associates. You have a way to have your voice heard on this issue. You have a way to stand up to the monopoly power being exerted by the WRA on behalf of its Mega-Broker constituencies and against YOUR best interests. If we cannot be heard within the organization...we do have ways of focusing our voices and being heard outside of the organization. Stay tuned...your way to focus your voice is about to be unveiled. Meanwhile, contact your legislators to voice your opposition to Designated Agency. You can find out how to contact your legislator to register your oppostion to Designated Agency by going to: http://www.legis.state.wi.us/wamltest/ Next Up: "Debunking Designated Agency" What the WRA didn't tell you in their Designated Agency Update. A point by point rebuttal and/or fuller disclosure of the facts they conveniently leave out. More on how it adversely affects consumers, small real estate companies and indivdual associates within mega-broker firms, too On Deck: Establishing REAL-Reform (Real Estate Agency Law-Reform) as the official movement to counter the Wisconsin Realtors Association's attempt to pass their Designated Agency concept into law. -- Sincerely Yours, Jay Reifert, Broker/Owner*****************Excel-Exclusive Buyer Agency 100% Homebuyer Representation********5136 E. Hilltop Road 100% Of The Time****************************Madison, Wisconsin 53711 South Central Wisconsin's ONLY********(800)928-9379, Toll Free Full-Time Exclusive Buyer Agency Firm.***(608)273-8841, Office Visit http://www.true-agent.com ***********(608)273-8388, Fax Machine or mailto:true-agents@true-agent.com Check out our NEW website, at: http://www.Buy-Madison-Real-Estate.com