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Real estate glossaryNational exam concept

Market allocation

Market allocation is an agreement among competitors to divide customers, territories, property types, price ranges, or other markets so they avoid competing with one another.

Exam area: Practice of Real Estate

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What does “market allocation” mean in real estate?

Market allocation is an agreement among competitors to divide customers, territories, property types, price ranges, or other markets so they avoid competing with one another.

How is “market allocation” different from the closest wrong answer?

Independent specialization is lawful. Competitors agreeing not to enter each other's territory or customer segment is market allocation.

What is the Georgia-specific rule?

A Georgia brokerage may choose to focus on a county or property type for business reasons, but it cannot make a reciprocal noncompetition pact with a competing firm.

Worked exam example

Scenario

Two brokerages agree that one will take all north-county listings and the other all south-county listings.

What is the most common exam trap?

Trap correction

The agreement can be illegal even when clients still have firms available in each assigned area.

Original exam check

Apply the definition

Brokerage A mostly lists condos and Brokerage B mostly lists farms, each by its own choice. Later the owners meet and agree that A will stop taking farm listings if B stops taking condo listings. What changed?

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Related terms to learn next

Antitrust

Antitrust law protects competition by prohibiting agreements and conduct that unreasonably restrain trade, including price fixing, market allocation, and certain group boycotts among competitors.

Price fixing

Price fixing is an agreement among competitors to set, stabilize, raise, lower, or otherwise coordinate prices or price-related terms instead of deciding them independently.

Group boycott

A group boycott is coordinated action by competitors to refuse to deal with a person, firm, platform, supplier, or customer as a way to exclude, punish, coerce, or restrain competition.

Redlining

Redlining is denying, limiting, pricing, or discouraging lending, insurance, brokerage, or other housing-related services because of the racial, ethnic, protected-class, or geographic character of an area rather than legitimate individual risk factors.

Recommended next complete lesson

Continue with Practice of Real Estate complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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