Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 45

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 45
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 and a corresponding decrease in the volume of sales
through real estate agents could have a material adverse effect on our business, prospects and results of operations.

The real estate brokerage
business is highly regulated and any failure to comply with such regulations or any changes in such regulations could adversely affect
our business.

Our Company owned real estate
brokerage business and our franchising business are highly regulated and must comply with Federal and state requirements governing the
licensing and conduct of real estate brokerage and brokerage-related businesses and franchising in the jurisdictions in which we and they
do business. These laws and regulations contain general standards for and prohibitions on the conduct of real estate brokers and agents,
including those relating to licensing of brokers and agents, fiduciary and agency duties, administration of trust funds, collection of
commissions, advertising and consumer and franchising disclosures. Under state law, the franchisees and our real estate brokers have certain
duties to supervise and are responsible for the conduct of their brokerage business.

24

Our Company owned real estate
brokerage business and our franchisees (excluding commercial brokerage transactions) must comply with the Real Estate Settlement Procedures
Act (“RESPA”). RESPA and comparable state statutes, among other things, restrict payments which real estate brokers, agents
and other settlement service providers may receive for the referral of business to other settlement service providers in connection with
the closing of real estate transactions. Such laws may to some extent restrict preferred vendor arrangements involving our franchisees
and our Company owned brokerage business. RESPA and similar state laws also require timely disclosure of certain relationships or financial
interests that a broker has with providers of real estate settlement services. In addition, the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd Frank Act”) contains the Mortgage Reform and Anti-Predatory Lending Act (the “Mortgage Act”),
which imposes a number of additional requirements on lenders and servicers of residential mortgage loans, by amending certain existing
provisions and adding new sections to RESPA and other federal laws.

We are also subject to various
other rules and regulations such as:

    ●
    the Gramm-Leach-Bliley Act which governs the disclosure and safeguarding of consumer financial information;

    ●
    the Sherman Antitrust Act which governs anti-competitive practices in the marketplace;

    ●
    various state and federal privacy laws protecting consumer data;

    ●
    the USA PATRIOT Act;

    ●
    the sale of franchises