Landed operates by means of collecting kickbacks from overpriced commissions. The scheme further allocates consumers to competing brokers in a blatant violation of the #ShermanAct and #RESPA.
Home buyers are inherently harmed by allocation practice between brokers and “paper” brokers, leaving tens of thousands in potential buyer rebates on the table in a form of openly negotiated rebates from broker commissions.
These facts are strongly supported by the Consumer Federation of America (CFA) report, published in September 2020, titled: “Real Estate Referral Fees, Unknown to Most Consumers, Contribute to High, Uniform Commission Rates”
In effect, consumers are steered by Landed brokerage (Landed is licensed in California under CA-DRE License # 01988003 among similar “paper” licenses in other states) toward a random network of brokers who overcharge significantly for commissions.
Landed is a “paper” broker that does not provide a tangible service as prescribed by the California Business and Professions Code Section 10131.
When consumers hire Landed “partner agent” they are steered into a consumer allocation scheme between brokers. In effect, a consumer hires two brokers for the work of one, making this scheme highly profitable for Landed, yet highly damaging for home buyers.
With a new round of funding from Learn Capital and Navitas Capital, this scheme will continue to target teachers, nurses, and first-responders until the competition law is enforced and consumers are able to shop for all real estate services openly.
Hidden kickbacks between brokers are one of the main reasons why real estate market remains deeply overpriced for all consumers. This practice, in aggregate, costs $15 billion each year in hidden fees and overpriced commissions.
#realestate #proptech #realtors #kickbacks #collusion #homebuyers #affordablehomes #ecommerce #firstresponders #teachers Federal Trade Commission Consumer Financial Protection Bureau U.S. Department of Justice California Department of Real Estate