Which action would violate the three basic rules?

• A. Collaborating with competitors on pricing
• B. Independently setting pricing
• C. Advertising truthfully
• D. Not discussing competition

Answer: (A)

Collaborating with competitors on pricing is not just unethical in real estate practice—it's illegal under competition laws. When licensees discuss or agree on fees, commissions, or listing prices, they eliminate independent pricing decisions and create artificial prices. That’s a form of price fixing, which undermines fair competition and can lead to serious penalties as well as disciplinary action. In practice, each professional should set pricing based on market conditions and client needs without sharing or agreeing on price with others.

Independent pricing is the appropriate, lawful approach because it preserves market competition and allows clients to compare genuine options. Advertising truthfully is essential to maintain trust and avoid deception, and not discussing competition is prudent to prevent even the appearance of collusion. These behaviors support ethical, fair, and competitive real estate practice.