Do You Pay Bribes to RE Salesmen?

The Bottom Line is…

When your name appears on a list of inspectors that requires that money be paid to a real estate salesman or broker and that list is what he provides to his clients as referrals…you are paying to play.

As a result…you will be thrown out of NACHI. It also violates ASHI’s SOP, but I don’t think they enforce it from the lists I have seen.

Secondly…the real estate salesman who limits his referrals to only those who pay is risking his license.

And last but not least…on this same bottom line…is the public perception and it ain’t a good one. The media reports are presenting the image that BOTH real estate salesman and home inspector are in cahoots.

Nobody has to prove anything.

Me either.

In the past, I had worked quite hard to be on a list of preferred inspectors. It wasnt called a list of preferred inspectors. It was a list of 4, with mine being first.

I got there by participating in seminars for first-time home buyers. I got there by being thorough and fair. I got there by offering free advice to agents. I got there by mentoring new agents on the realities of inspections.

I never paid.

However, as advertising money became tighter for these Realtors, many started moving towards internet sites, formal marketing brochures/magazines (twice a year), etc. With that came the requests t pay to be listed on a site. I never paid, and was never listed.

I believe that it is okay to pay to play. That’s right.

However, the caveat is the accompanying verbiage which should disclose that names on that list paid to be there and is not necessarily an endorsement of the firm or their work product.

Unfortunately, the caveat is never there. Therefore, it is NOT okay for pay to play.

You can see pay to play in many versions, including annual events where inspectors, attorneys, mortgage companies, etc must contribute to the cost of the event, and receive a free breakfast or pay a higher amount for the priveledge of having a table where they give away things.

Most of the time, the decision comes down to 1) cost and 2) availability. Affiliations, training, competence, and experience are almost never considered with these lists.

Quote: "The Bottom Line is…

When your name appears on a list of inspectors that requires that money be paid to a real estate salesman or broker and that list is what he provides to his clients as referrals…you are paying to play.

As a result…you will be thrown out of NACHI. It also violates ASHI’s SOP, but I don’t think they enforce it from the lists I have seen.

Secondly…the real estate salesman who limits his referrals to only those who pay is risking his license".

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Not exactly - EXAMPLE: When you pay the local Board of Realtors as an affiliate - You pay them. Then they hand out a LIST of Inspectors to Agents ARE they participating in a PREFERRED VENDOR List or not??

Any inspector, vendor, or agent has to pay a yearly fee to be a member of the Kansas City Regional Association of Realtors. They then publish a book that “lists” their members, including home inspectors who pay the fee to be listed. Is this a violation of Kansas home inspection laws and are National Association of Realtors ethics violations?

The attorney general of Kansas needs to clarify, Mr. Luke Bell of the KAR needs to explain this to his members, and the NAR needs also to respond.

When you pay to be on a list of referred inspectors…and inspectors who do not pay are not referred…you are violating the COE.

When a real estate salesman refers you to a client as a result of your paying them…and refuse to refer inspectors who do not pay them…they have violated their license. No longer are they acting in the best interest of their client.

In the television report that will be aired, one of the names on a list is an inspector rated “F” with the BBB who has been the defendant in several lawsuits which he lost as a result of shoddy work. Yet…because he gives the real estate salesman money to be on his list…he is continued to be referred. There are more than 30 inspectors on this list who the television station are considering to be (and are presenting to be) unethical for paying a bribe…referred by unethical salesman who solicit the bribe. Consumers who view these broadcasts are being warned to reject such referrals and to seek inspectors with whom their real estate salesmen do not have a financial relationship with.

Here is how the COE reads: The InterNACHI member shall have no undisclosed conflict of interest with the client, nor shall the InterNACHI member accept or offer any undisclosed commissions, rebates, profits or other benefit, nor shall the InterNACHI member accept or offer any disclosed or undisclosed commissions, rebates, profits or other benefit from real estate agents, brokers or any third parties having financial interest in the sale of the property **nor shall the InterNACHI member offer or provide any disclosed or undisclosed financial compensation directly or indirectly to any real estate agent, real estate broker or real estate company for referrals or for inclusion on lists of preferred and/or affiliated inspectors or inspection companies.

**The COE is quite clear on this.

I can see the time coming…and not that far off…where inspectors will find it to be in their best public interest NOT to appear on any list published by real estate salesman. Just like the television news reporter that I spoke to, no one is going to believe that a home inspector is going to pay someone hundreds or thousands of dollars to be referred…and then report anything in such a way that will jeopardize the relationship he paid for.

No, it is not.

It should be. Any RE that lists any vendor in any of their advertising, office brochures, folders, magazines, etc. is being compensated in some way. If we, as home inspectors are in violation, then any builder, roofer, repairman, carpet cleaner, et. al. should be in violation also. Sounds llike a court case/attorney opportunity to me.