Bribes Being Paid to Real Estate Salesmen

Thank you, Manny Scanlon and Nick Gromico for your work to bring this out.

I forgot this was on and when i switched over to the news, there was Nick on my tube. Looking sharp in his suit and tie. I was shocked to learn TREC said it was okay to pay realtors to be a preferred vendor. Not sure how I misunderstood the rule so bad. Seemed so straight forward to me.

Only in Texas??? Probly not!!!

So much for the article I guess when they add this at the end. Probably paid the writer a grand to end it nicely—:twisted:

Pity some inspectors are starving for a few peanuts to be tossed their way–:twisted:

I see the Inspector out of Denton Texas that was interviewed thinks bribes are OK and is a member of ASHI and NAHI.
He also happens to be a franchisee to Pillar and Post.

The Texas bureaucracy looks the other way while twisting the meaning of their own words to not follow law.

As Cyndi Lauper sings:

“Money changes everything!”

Due to the HUD’s ruling that Realtors cannot get kick backs no longer from home warranty companies due to the RESPA Section 8 . I believe this would hold true for receiving kickbacks from inspectors for advertising too. What do you guys think?

I would think so, but there always seem to be loopholes.

[FONT=Arial][size=2]A. Unlawful Compensation for Referrals
[/FONT][/size]RESPA does not prohibit a real estate
[size=2]broker or agent from referring business[/size]
[size=2]to an HWC. Rather, RESPA prohibits a
real estate broker or agent from
receiving a fee for such a referral, as a
referral is not a compensable service.


Did not see HUD state anything about their use as a Advertising List rather that Paying for-it is a NO-NO. Correct me if I’m wrong.

If HUD says that real estate brokerage cannot collect an advertising fee for home warranties because it is violates RESPA, than collecting a fee for allowing inspectors to advertise should be send the same way.
NACHI has lawyers on retainer (they get paid if they do anything or not) so I think if the lawyers should send HUD a letter and ask them to rule on real estate brokers collecting advertising fees from home inspectors, HUD would probably rule our way.

I often wondered if this went on. I guess now I know.

Who hasn’t gotten a call to be on a preferred vendor list? Or in an “Office Book”? and so on and so on.

IMO - Here’s the Real Problem

In a “tight” market like ours right now, agents will “push” harder for a “friendlier” Inspection.:roll:

Example: 2 Inspectors / Same House / Same Problem.

Although BOTH inspectors identify a problem… some make it a little harder to discern as to it’s seriousness. Bury it in the narrative report and if a client calls, just tell 'em “You didn’t read the whole report”:p:p This goes on and on only as a disservice to the HI profession.

  1. First inspector MAY audibly “discuss” defect with buyer/client as well as include in summary with language that would **MOTIVATE **a client to action.
  2. Second Inspector still identifies the problem and but doesn’t “MOTIVATE” client to action.

We all know how this is done if we have been around the block.

And no, I’m not saying to be an over alarming sort of inspector. That doesn’t suit ANYBODY.

I’ve seen a report from someone else for the same house:)

Recently, after sending out my report, I “magically” rec’d a copy of another inspector’s report for the same address that I had done. It was a different email than I had sent to… don’t know how anyone else got it (the other report). I may not be perfect, but there were an arm’s length difference in defects in my summary… sunken/rusted metal chimney cap, B vent terminating too close to a window, beam twisted/slipping away from joist’s on the patio cover, failed seals on windows and so on.

I concluded after getting about 1/2-2/3 the way thru that the other inspector either: Lacked knowledge or was trying to keep people happy. These were not difficult issues such as trying to discern foundation cracks or something like that. Just basic visual stuff.

Sad, really sad.

Groucho said it better… * “Love flies out the door when money comes innuendo.”*

If a private real estate brokerage has an expo, and an inspector has a table at it. The inspector pays for that table. The inspector is promoting Nachi and his own business. Is there any difference between that and buying advertising space in the firms real estate magazine?:-k

The article posted is great. Nick did a great job in representing all home inspectors. I can see how this is frustrating to all inspectors. If you are the best you shouldn’t have to pay to be the best, customers and Realtors should just know who is good!

Sell your songs online

Hmmm, no opinions here?

Is the Expo for realtors only, or open to the public?

Fun for everyone, but mostly Realtors.

Fine line, but… being available to the public, you are renting the space to market to the public. Side benefit that you will have exposure to realtors, also. You would not be marketing directly to any particular realtor/realty. You would be marketing to the industry.

I turned it down, since I thought it was a clear ethics violation. Another member picked it up…my bad. :mad: