Should agents use contract forms that include preprinted commission rates?

The inclusion of preprinted commission rates in contract forms can lead to significant legal implications under antitrust laws. Specifically, antitrust laws are designed to promote competition and prevent unfair business practices. When agents use standardized commission rates, it may create an appearance of price-fixing or collusion among agents, as it can be seen as setting a uniform pricing structure within the market.

By establishing preprinted rates, agencies may inadvertently stifle competitive practices where agents should ideally negotiate commission rates based on the specifics of each transaction and the unique services they provide. This flexibility is essential for fostering healthy competition, allowing different agents to offer varying commission structures that reflect their level of service, market conditions, and individual negotiation tactics.

Additionally, using contract forms with preprinted commission rates could lead to scrutiny from regulatory bodies, as it may not comply with local, state, and federal laws governing fair trade practices. Therefore, avoiding preprinted commission rates helps ensure compliance with these laws while also promoting more transparent and competitive negotiations.