RealTown's RealTalk

I had a student ask me a question the other day that has me thinking, and I'd like other input on it. As a buyer's agent, she went to show a listing in the MLS, listed through another company. It was a scheduled appointment (listing agent knew she and her client would be going through the house). Throughout the house were, for lack of a better term, 'ads' promoting the use of the listing agent as a buyer, e.g. "Buy through Agent X and receive up to $10,000 in benefits!" "Buy though Agent X and get a free home inspection!" All of the information indicated that these benefits were available only if the buyer uses Agent X. She asked: isn't this a violation of Article 16--I'm in there with my client, and the listing agent is trying to entice my client to dump me and go with him...so..what do you guys think?

Melanie J. McLane, ABR, CRB, CRS, ePRO, GRI, RAA, SRES, SRS. Offering training and consulting to the real estate industry for companies, schools, and individuals. Serving North Central PA Real Estate needs for 33 years. For brokerage, listings and sales, contact me at Fish/GMAC Real Estate, 570-326-1561, 1868 E. Third St. Williamsport PA 17701. Licensed in PA as an associate broker and a Certified Residential Appraiser. For appraisals, training, teaching, and consulting, contact me at: McLane Solutions, 570-398-1201 or 570-660-9671. Visit my website, www.TheMelanieGroup.com to read my blog.

16-2 states  Article 16 does not preclude REALTORS^® from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another REALTOR^®.

 I assume we are talking about brochures on a table or something? I mean I can't imagine the seller allowed her to put up banners and posters in the home.  CB out here has their Home Service for Life program which requires that you use one of their agents to buy a home.  I have walked into many an open house with a client, and there are those materials all over the place.  I don't offer gimmicks, but on the rare occasion I do an open house for a client, I bring my brochures and such.  I don't think that is any different that what you are talking about.

Agents advertise all of the time, "Buy through me and get a Plasma tv."  There are a lot of gimmicks.  Maybe she just had an open house over the weekend and left her materials there.  Maybe she just leaves a few there for when she does showings to hand out to buyers without agents.  Who knows.  I don't think there is a sinister plan here. .

Now if the other agent showed the house to your client for you, knowing that she had an agency relationship with you, and then gave her a speech about why she should switch that would be different.  There is so much advertising out there to entice clients away from their agents. Sometimes people get so bent out of shape about "enticing" each others clients away.  You clients aren't going to be enticed away if they believe you doing a good job for them.   I guess I think that if your client is going to be enticed away due to a brochure that states she can have a free home inspection, then you aren't doing a very good job as a buyers agent. 

Melina Tomson, MS
Serving the Salem, OR Metro area
www.salemoregonhomes.blogspot.com
melina@tomsonburnham.com
www.TomsonBurnham.com
ph: 503-371-6515
fax: 503-588-1628

I go in houses all the time where there is tons of  propaganda.  It doesn't affect me in the least and it certainly doesn't affect my clients views of the house or me as a Realtor, I work on referrals and they use me because I am the best not because I am going to buy them.  Me personally, I wouldn't worry about it.   

what I would worry about is RESPA!  We need to all be very aware of the RESPA laws and what we are offering to prospective clients.  Free stuff to make a sale is a big no no and HUD has been handing out big fines right and left. 

 Mick Burke  e-Pro

Golden Realtors
Albuquerque, NM USA
(505) 228-1500
fax (505) 765-1353
Mick@HomesintheQ.com
www.HomesintheQ.com

Hello Melanie,

I would think that this is definitely an Article 16 Violation.  It seems like that is a blatant solicitation of a buyer that is presumably already under a Buyer Agency contract (assuming that your state has buyer agency).  The likelihood that a buyer would be touring the home without a buyer is very slim.  The best way to find out for sure is to contact your local Association.  With all of the blind ads, and dishonest practices going on, I have ours here in Charlotte on speed dial...

Have a great day,

I had a student ask me a question the other day that has me thinking, and I'd like other input on it. As a buyer's agent, she went to show a listing in the MLS, listed through another company. It was a scheduled appointment (listing agent knew she and her client would be going through the house). Throughout the house were, for lack of a better term, 'ads' promoting the use of the listing agent as a buyer, e.g. "Buy through Agent X and receive up to $10,000 in benefits!" "Buy though Agent X and get a free home inspection!" All of the information indicated that these benefits were available only if the buyer uses Agent X. She asked: isn't this a violation of Article 16--I'm in there with my client, and the listing agent is trying to entice my client to dump me and go with him...so..what do you guys think?

I agree RESPA is an issue, but I assume the $10,000 in incentives is some sort of rebate?  We don't allow rebating in Oregon, but I guess I assumed the fine print said it was a rebate. 

How things are worded in the fine print is really important.  What does the fine print say?

Melina Tomson, MS
Serving the Salem, OR Metro area
www.salemoregonhomes.blogspot.com
melina@tomsonburnham.com
www.TomsonBurnham.com
ph: 503-371-6515
fax: 503-588-1628