Is it illegal in Florida or against the InterNACHI code of ethics to pay those who refer us to clients a referral fee?
If so please post a link to the information or whatever proof you have.
Thanks In Advance.
#6
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look at the left side of your screen in the blue column. See Inspection standards? Look at the Code of Ethics. I think it is item #6.
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.
It says in the SALE of the property. What about insurance inspections? Just wondering.
That is what I am asking only insurance inspections.
I see no mention of it anywhere that is why I am asking.
In other words can you give insurance agents a referral fee as a thank you when they send you a client?
Good question…hell it seems the Mike Rowan is already getting it, so why not?
Bad habit to get into. Soon they become accustomed to the practice and expect it every time.
Lets see. You make $75.00 for the inspection Give a referral fee and you might as well do them for free.
Only in violation of COE if you are paying agents for the referral. You can pay past clients, friends, contractors, or anyone else you want to for a lead.
Whether or not you can do it might be a gray area (and something for the Ethics Committee to change as soon as possible), but there is also the Insurance Agents own code of ethics which I’m sure deplores the act.
This is not a debate on if it is a good practice or not I just would like to know if it is legal or against our current code of ethics.
Is that real estate agents? I see nothing about insurance agents.
**Florida Law **
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0468/Sections/0468.8319.html](http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0468/Sections/0468.8319.html)
(h)
Offer or deliver any compensation, inducement, or reward to any broker or agent therefor for the referral of the owner of the inspected property to the inspector or the inspection company.
I think its a great idea. If I were you I would give them a $75 referral fee and corner the market!
Russel,
Don’t you remember, I do not work unless there is a profit to be made?
My understanding is real estate agents. However, I could see it being interpreted as insurance agents as well because they may have a financial interest in the transaction. Frankly I would think that since it is a gray area, the ESOP would have a difficult time in sanctioning anyone for the practice because it is not specifically stated.
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.
Simply put, the answer is no. If you want to take it from a stricly legal standpoint, insurance agents are not specifically mentioned, but what does third party mean?
Why would you want to whore yourself out like this. Are things really that bad?
That’s the key, there has to be a RE transaction.
I think it is only against the rules if you are dealing with someone who has something to do with the sale of the property.
I know it is going on and just want to know the rules. It is always important to know the rules of the game.
Thanks to all who contributed I believe I now know the answer.
I always knew that you would confirm my disdain regarding “hammer jockeys” entering the home inspection profession, thanks for becoming the poster boy for poor business ethics.
Had you taken Bill York’s class you would have received the workbook where it is clearly laid out and where the (FAIA) is keeping a close watch on ethics violations like this.
From Bill Yorks Manual: Page IV
In 2009, the Florida Association of Independent Agents (FAIA) released a white paper highlighting the issues with misunderstanding, poor training, or even fraud and abuse associated with the mitigation inspection and reporting process. The following provides guidelines on avoiding some of the more obvious problems covered in the report.
- Maintain *third party independence *in the inspection process at all times. The purpose of the inspection is to independently verify the existence or non-existence of certain construction features without prejudice to any entity or party in the process.
- Avoid business practices that create the *appearance of impropriety *or serve to establish a financial link, relationship, or any other form of compensation between the inspector/firm and any entity or individual involved in the process including but not limited to:
- Kick backs, gifts, or other forms of compensation for agent referrals,
- kick backs, gifts, or other forms of compensation for consumers,
- marketing programs, discounts, or fees based on inspection results or outcomes,
- use of un-trained or improperly trained or unqualified individuals to perform inspections,
- performing inspections on personal or immediate families properties,
- self certification of homes built or improvements made under your license,
- any other activities that could be construed as a conflict of interest, etc,