Skip to content
Pass Georgia
Download
Complete glossary lessonNational 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.

Official area

Practice of Real Estate

Knowledge cluster

Competition and business conduct

Learning sequence

Define, distinguish, apply, retrieve

Download PDF

Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

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 exam 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.

Decision rule

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

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.

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

Original exam check

Apply the definition

Which statement correctly explains Market allocation?

Mastery tracker

Do not mark this term complete until you can retrieve it.

0%

Progress is stored only in this browser.

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.
Previous termPrice fixingNext term Group boycott

Market allocation quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is 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.

What is Market allocation commonly confused with?

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

How does Georgia treat Market allocation?

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.