REX Urges Arizona’s Real Estate Commissioner to Allow Consumers Freedom of Choice in Home Purchases
Offers not considered unless submitted on forms mandated by a members-only brokerage association
Austin, Texas, June 14, 2021 – REX, the technology company disrupting the high-fee, legacy real estate system, sent a letter to Arizona’s Real Estate Commissioner after brokers refused to timely consider competitive offers from REX’s homebuyers simply because the offers were made on REX’s offer form, not the ones created by a members-only brokers association. The association dictates the terms of home sales to the benefit of its members, not consumers. REX’s letter asks the Commission to clarify that brokers must submit all valid offers from buyers and not coerce consumers to use specific forms unless mandated by state law.
“Brokers have a duty to serve the interests of homebuyers and sellers, not their members-only association. Closing the doors to homeownership because the offer is not on a form belonging to a private association is pure economic protectionism and has no place in Arizona. We look forward to Commissioner Lowe’s consideration of our letter and her leadership on behalf of Arizona’s consumers,” said Michael Toth, REX’s General Counsel.
REX’s letter came after several recent incidents where homebuyers represented by REX were at one point shut out of negotiations to purchase homes listed for sale in Arizona. In each of these incidents, the REX homebuyer made a competitive offer but the offer was not immediately considered because the company did not use the form mandated by a members-only private broker group.
REX is fully licensed and approved to do business in Arizona. Moreover, REX’s offer form is not only 100% legal, but substantively the same as the members-only form. Yet agents still refused to show their clients REX’s competitive offers because the preferred form was not used. In the letter, REX explains that mandating the use of the members-only association forms is incompatible with Arizona law.
REX’s letter is one of several ongoing efforts by the real estate tech company to expand access to homeownership at a time when sky-high prices and vanishing inventories are closing the American Dream to many. In addition to the letter, REX is fighting to give cash back to consumers by taking on state rebate bans. Last November, REX sued Oregon over the state’s policy that prevents REX from lowering real estate commissions by giving thousands of dollars of commissions back to cash-strapped consumers struggling to find affordable housing.
REX is also defending online home shoppers by taking on a private rule by the National Association of Realtors (NAR), which forces brokers to separate homes for sale based on whether the selling agent is a member of a local broker association. Known as NAR’s “segregation rule,” REX is challenging it as an unlawful and anti-competitive barrier to low-commission homes and innovation.
A copy of the Arizona letter can be viewed here.
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