Which act addresses the negotiability of commissions in real estate transactions?

The Sherman Anti-Trust Act is pivotal in addressing the negotiability of commissions in real estate transactions as it pertains to competition and pricing within the real estate market. This federal statute prohibits monopolistic practices and aims to promote fair competition. Real estate commissions can be considered as part of the pricing structure that can be influenced by market forces. Under this act, the arrangement and negotiation of commissions must comply with regulations that prevent collusion among brokers or agents to set fixed commissions, thereby ensuring that consumers have the freedom to negotiate these fees.

In contrast, the Real Estate Settlement Procedures Act primarily focuses on disclosure of settlement costs and ensuring that consumers are informed about the services and costs associated with real estate transactions. The Fair Housing Act prohibits discrimination in housing practices, and the Landlord-Tenant Act typically governs the relationship between property owners and tenants, with little to do with commission negotiations directly. Thus, the Sherman Anti-Trust Act is the most relevant legislation regarding the negotiability of commissions in the realm of real estate.