Had a Realtor Pitch His "Pay to Play" Program to Me

[Nick Ostrowski]

So I did a 2nd inspection for a buyer a couple weeks ago and his realtor shows up towards the end. He seems like a nice enough guy and as we're leaving, he asks me how far I travel for inspections and that he likes to give his buyers options on who they hire. Sounds fine. I think maybe I'll hear from him, maybe I won't. Well he called me a couple days ago and lays out his "marketing agreement" to me and asks if I'm interested in growing my business. He said he may do 15-20 deals a year and that if he's going to send $5,000.00 in business somebody's way, it would be nice to get something in return like $50 per inspection. I told him no thanks and that my association's COE prohibits me from engaging in this type of arrangement. He tried to tell me it's not about breaking the rules or doing anything illegal, it's about working around the rules.

Ooooo-k.

[Jack Feldmann]

Ask him to put his proposal in writing, and you will consider it. Then forward it to the Board of Realtors.

[Nick Ostrowski]

I really couldn't believe what I was hearing out his mouth. I hope to never hear from him again.

[Raymond Wand]

... it's not about breaking the rules or doing anything illegal, it's about working around the rules.

Priceless! Makes you wonder what else he is working around? ;)

[Jim Luttrall]

Amazing that some agents know so little about "their" ethical standards and are willing to risk losing their license, fines and posibly going to jail for violating Federal RESPA standards.
RESPA - Real Estate Settlement Procedures Act Home Page - HUD (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm)

[Jerry Peck]

The best way to handle agents like that is to say 'Sure, 50 bucks is no big deal, I look forward to our next inspection.' ... then contact the local TV station and tell them what you are setting up - invite them to come along as a 'trainee inspector' ... bring a hidden camera - when the agent calls and sets up the inspection, contact your TV news reporter so they can come along for the ride.

Then watch the news that night as that agent is exposed on the 6:00 local TV news! :cool: :applouse:

And, as a by-product of the news story, guess who will be receiving all that valuable publicity to all the local viewers ... YOU! :D

That is what you call a win-win-win (for the TV news station, for the citizens of the area, and for you) situation.

[Mark Reinmiller]

That is the kind of agent that I would make sure I am not available if he called or referred me an inspection.

[JeffGHooper]

Amazing that some agents know so little about "their" ethical standards and are willing to risk losing their license, fines and posibly going to jail for violating Federal RESPA standards.
RESPA - Real Estate Settlement Procedures Act Home Page - HUD (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm)

Absolutely correct.

Turn them in. They are actively perusing this type of violation. Also contact their Broker.

[Bob Ross]

I had one similar here in New Mexico early 2014. We were looking to purchase a short sale home. I told the realtor I needed to setup a time to do an inspection. She flat out told me in writing, that the bank will not allow me to perform my own inspection because I'm not licensed.

I said really? but she had a list of three that would do a fantastic job for me and I wasn't allowed to be present they work alone.

So having received the banks name prior to all this, I contacted their legal department and asked how long they have been doing this and when would they like to have my attorney contact them.

We didn't take the house, she realtor no longer lists their properties.


Absolutely correct.

Turn them in. They are actively perusing this type of violation. Also contact their Broker.