An agent in town advertises that she will give away expensive spa gift certificates to anyone who lists with her or signs a buyer representation agreement with her. Is this unethical?
The agent hasn’t violated the Code of Ethics if she clearly communicates in her advertisement any contingencies that must occur before someone is entitled to receive the gift certificate, such as the seller listing with her or a buyer signing a representation agreement.
Article 12-3 outlines the terms of such an offer, stating: “The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the REALTOR® making the offer. However, REALTORS® must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the REALTOR®’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.”
What a profitable deal. Look at the now prices of drugs. What is the difference between a bribe and a rebate? Oh wait if we push Realtor® fee down and clients do not like the fee wanting big rebate or no listing. They then can move to for sell by owner. At lest we have laws about making drugs. Vendors in many product have largest cost build in is the rebate. Buyer are reselling and make more money on rebates than the product they build. This is the cost of doing business, lobbyist have taught us well.
I see nothing wrong with this!
Neither do I
Been going on for decades from what I’ve heard; just more “out in the open now.” There have always been some type of” legal fiction” to make the practice sound legal.
I have an ad in the local newspaper every week that says if your listing closes, $500 will be donated to your favorite charity
is this within the guidelines of being legal?
I’d be interested in knowing the answer to Michele’s question. I’ve been told in the past that the donation must be to the REALTOR’s choice charity, not the client’s.
Everything is Negotiable, always has been always will be
What about some companies advertising in social media, print and radio offering 1 to 2 per cent or flat fee
listing fee? Is that a form of inducement to list? Boldly they are also advertising that they are not member
of the MLS system and directly selling to the public through their web site. Are they not subject to regulations and Standard of Practice? and if they are not members of Local Boards or TAR why they use the word Realtor?
I guess I’ve never really understood referral / client gifts. I thought we were held to $50 maximum . . . of course, listing/buying discounts can be whatever is negotiated, but I thought gifts were different.
Can someone with TAR please address this. I would love to know what is right and wrong on this issue, because there seems to be whole lot of confusion.
The $50 maximum relates to the payment of money or gifts in kind to people who refer you business. The case discussed above is not a referral, it is a direct agent/broker to principle relationship. The reason there is a difference is that in the case of an agent/broker to principle relationship, the offer of a gift (or cash equivalent) is no different than the rebating of commission to a principle, or similar monetary offer made to a principle. Note, however, that for IRS purposes, the value of the gift in excess of $25 is NOT tax deductible.
What happened to limiting the gift to $50. in a gift certificate or gift?
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I live in Texas, as a realtor I would like to advertise to student band and sport teams in my local area.
That with every buyer or seller that uses my services I will donate to their student organization $500.00 donation on their behalf. Is this legal?
I had a potential seller who has a home that’s been neglected and requires lot of work.I never completed the contract but did helped clean the property. She hadn’t been there in a while and after looking at it she doesn’t have the funds to fix and owers back taxes. She despises her neighbors and has offered it to me free of charge. Can I accept it. She doesn’t want anything to do with it
Can you offer an inducement to buyers? As in “$15,000 European Vacation”