Broker/Owner tells his agents NOT to use inspectors on his own Preferred Vendor list.

This is a total hoot!

A real estate broker/owner recently told all his agents by way of in-house memo, NOT to recommend inspectors that pay to be on his own Preferred Vendor list for fear that it violates the agent’s fiduciary duties to their clients to refer the best inspectors and not the inspectors that pay the broker/owner. He was afraid that a problem with an inspection done by an inspector on his Preferred Vendor list would cause him to be sued for negligent referral.

I’m trying to get his permission to post his memo on our message board.

Pretty wild.
Saw those CB programs in Colo, C21 in Idaho, never thought I’d hear that twist!

We’re looking to financially subsidize a negligent referral suit against any agent caught violating his/her sworn and contractual fiduciary duty to his/her client to refer the best inspector by referring the inspector that paid them the most. Real estate agents must make their inspector referrals based solely on merit… not money.

“Real estate agents must make their inspector referrals based solely on merit… not money.”

Sheesh. What a concept. Be nice if it caught on in certain circles!


Would love to see the broker say ok. Alot of that is happening up here.

Most agents are decent and honest and represent their clients professionally. They have more experience with inspectors than buyers could ever hope to have, and should recommend inspectors. They should also make darn sure that those inspectors have insurance and stand behind their service. If brokers, agents, and inspectors worked together more closely, the industry would be in better shape.