Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 29

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 29
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. In the settlement, effective mid-July 2024, NAR agreed to put in place a new rule prohibiting offers of compensation on the
MLS, as well as adopt new rules requiring written agreements between buyers and buyers’ agents. However, the direct and indirect
effects, if any, of the judgment upon the real estate industry are not yet entirely clear.

These lawsuits, together with
similar lawsuits against other businesses in our industry, have prompted discussion of regulatory changes to rules established by local
or state real estate boards or MLSs. At this time, we do not believe to be negatively affected by such lawsuits due to flexibility of
our agent-centric commission model, creating multiple revenue streams for our agents, and due to our consumer-centric technology model.
However, the resolution of the antitrust litigation and/or other regulatory changes may require changes to our or our brokers’ business
models, including changes in agent and broker compensation. This could reduce the fees we receive from our affiliated real estate professionals,
which, in turn, could adversely affect our financial condition and results of operations.

Internationally, our operations
are also subject to laws against improper payments, including the U.S. Foreign Corrupt Practices Act and similar global regulations.

State and Local Regulation

We are subject to state real
estate and brokerage licensing laws and requirements that vary from state to state. In general, all individuals and entities lawfully
conducting businesses as real estate agents or sales associates must be licensed in the state in which they carry on business and must
at all times be in compliance.

Real estate brokers are required
to be employed by the brokerage firm or as an independent contractor and the broker may work for another broker conducting business on
behalf of the sponsoring broker. Generally, attorneys may act as brokers in some states without being separately licensed.

States may require a person
licensed as a real estate agent, sales associate or salesperson, to be affiliated with a broker, as either an employee or an independent
contractor, in order to engage in licensed real estate brokerage activities or allow the agent, sales associate or salesperson to work
for another agent, sales associate or salesperson conducting business on behalf of the sponsoring agent, sales associate or salesperson.

Engaging in the real estate
brokerage business requires obtaining a real estate broker license (although in some states the licenses are personal to individual agents).
In order to obtain this license, most jurisdictions require that a member or manager be licensed individually as a real estate broker
in that jurisdiction. If applicable