Cease and Desist

Cease and Desist

A ‘Cease and Desist’ order is a legal injunction issued by a court or an administrative body requiring an individual or entity to stop an activity that is deemed unlawful. In the context of real estate, these orders can be particularly significant in addressing violations like antitrust behavior among real estate firms or illegal discriminatory practices.

Long Description

When a ‘Cease and Desist’ order is issued, it typically means the accused party must immediately halt the specified activity and can prevent continued or future infractions. These orders demand strict compliance, and failure to adhere can result in significant legal penalties, including fines or further judicial actions.

For real estate brokerage, ‘Cease and Desist’ orders can be instrumental in maintaining fair practices in the market. They may be used to cease unethical practices such as:

• Antitrust Behavior: This includes collusion among brokerages to fix prices, limit competition, or create monopolistic conditions.
• Illegal Discrimination: This is commonly referred to in the context of fair housing laws, which ensure equitable treatment for buyers and renters regardless of race, religion, gender, familial status, or disability.

Examples

1. Preventing Steering:

   • Incident: A realtor is favoring certain neighborhoods for clients based on racial preferences.
   • Action: The Department of Housing and Urban Development requests a civil court to issue a ‘Cease and Desist’ order.
   • Outcome: The realtor must halt steering practices immediately and comply with fair housing regulations.

2. Antitrust Violation:

   • Incident: Multiple real estate firms are accused of price-fixing.
   • Action: A state attorney general issues a ‘Cease and Desist’ order to halt anti-competitive agreements.
   • Outcome: Firms must stop colluding and maintain independent pricing to foster market competition.

Frequently Asked Questions

Q: Who has the authority to issue a ‘Cease and Desist’ order?

• A: Courts and regulatory agencies such as the Federal Trade Commission (FTC) or the Department of Housing and Urban Development (HUD) can issue these orders depending on the violation.

Q: What happens if you ignore a ‘Cease and Desist’ order?

• A: Ignoring such an order can result in severe penalties including fines, imprisonment, or lawsuits.

Q: Is a ‘Cease and Desist’ order permanent?

• A: Not necessarily. Some orders could be temporary until a full legal hearing is completed, while others could be permanent based on judicial findings.

Q: Can you contest a ‘Cease and Desist’ order?

• A: Yes, typically through legal channels, you can contest the order to argue your case.

Q: What constitutes enough proof for issuing a ‘Cease and Desist’ order in real estate?

• A: Proof can include documented complaints, violation history, or evidence from investigations by regulatory bodies.

Related Terms

1. Injunction:

   • Definition: A court order requiring a party to do or cease from doing certain activities.

2. Antitrust Laws:

   • Definition: Regulations that promote fair competition and prohibit monopolistic business practices.

3. Fair Housing Act:

   • Definition: A federal law that prohibits discrimination in buying, selling, renting, or financing housing.

Online Resources

• U.S. Department of Housing and Urban Development (HUD)
• Federal Trade Commission (FTC)
• American Bar Association

References

1. U.S. Department of Housing and Urban Development. “Fair Housing Laws and Presidential Executive Orders.” HUD.gov.
2. Federal Trade Commission. “Antitrust Laws.” FTC.gov.

Suggested Books for Further Studies

1. “Real Estate Law” by Robert Aalberts
2. “Real Estate Principles” by Charles J. Jacobus
3. “Law of Real Estate Brokers” by William H. Pivar

Real Estate Basics: Cease and Desist Fundamentals Quiz