The Market Structure and Behaviors of Houses Brokerage:

The Applications of the Fair Trade Law

The major purpose of this paper is to analyze the structure and conduct in the market of real estate brokers , and also introduce the regulation of market conducts. We especially explain the provisions of the Fair Trade Law case by case before legislating the specific law of the real estate broker. Because of the characteristic of information asymmetry in the market of real estate brokers, the brokers passing on transaction information between sellers and buyers play an important role in the process of transaction. Therefore the brokers have the dominance in the market. The market regulation under the Fair Trade Law and the Consumer Protection Law is very limited. We suggest that the specific law of real estate brokers has to be legislated as soon as possible, the brokers should build a self-regulated system and the consumers must care about their rights and interests by themselves.