Coldwell Banker getting sued over affiliate companies.

[Nick Gromicko]

http://www.sfgate.com/cgi-bin/articl...EG6MOEHFL1.DTL

[David A. Andersen]

Interesting!

I can see some pretty obvious lawyer verbiage in that article. Unsubstantiated, unsupported allegations that are being "perceived".

Because the affiliate company charges more than anyone else, obviously someone else is pocketing the money?

I have seen a Coldwell Banker contract in court, and there are major amounts of notification of any affiliations with Caldwell Banker or perceived affiliations. There is sufficient notification (in this document), if read by the client would explain relationships between companies.

I would like to see the facts to support this allegation. There may be some hanky-panky going on in one brokerage, but it is unlikely it is a national conspiracy to defraud.

NACHI promotes association with other companies all the time. Are perks offered as part of the marketing? Most likely! Obviously! If these companies are not the best deal in town, does that open NACHI to litigation?

If NACHI home inspectors have higher rates than other associations, I guess this means Nick is pocketing all the extra money!

Are you getting any perks on this?
http://www.nachi.org/homeheadstart2006.htm

[wsiegel]

"In the case of a broker-client relationship, fiduciary duty means that a real estate broker is bound to put a client's best interests ahead of the broker's and must not profit from the fiduciary relationship unless the client consents. A fiduciary is also supposed to disclose material facts that may affect the client's best interests."

It had been a known fact that many real estate companies have fees for inspectors to join there so called ellite club, and to be put on the inpsection list. This vilolates every ethical standard in the book. Not too long ago Arvida got sued for the same thing and lost.

[Paul W. Abernathy]

dang agents....yep corrupt I say....thehehehe

[James H. Bushart]

Originally Posted by wsiegel

"many real estate companies have fees for inspectors to join there so called ellite club, and to be put on the inpsection list.

Coldwell Banker is one of them.

We are on the cusp of a public backlash against the real estate community and the poor home inspectors found in their pockets will suffer, dearly, I believe.

[Dan Bowers, CMI]

Are these affiliates like HI's. Did CB cheat the consumer out of a better deal because there were lower priced services available OR could they have got a better service?

Question - do low price HI's provide better service than normal priced HI's??

[whandley]

Originally Posted by dbowers

Are these affiliates like HI's. Did CB cheat the consumer out of a better deal because there were lower priced services available OR could they have got a better service?

Question - do low price HI's provide better service than normal priced HI's??

Here in california, when you buy a home the sellers side of the transaction normally picks all the escrow and title related services. You can bet the seller didn't choose but rather went along with the listing agents recommendations. In this particular case sounds as though the real estate company, broker and or agents benefit by directing the clients to an associated company for profit which does not directly benefit the clients. It happens here in california everyday with every real estate company.

[dmoore3]

What is one's perception is often another's reality.

[ggreene]

I'd been approached 3 or4 times by the local CB branch manager, these realtors just don't know how to spell COLUSION. It all sounded like a payola skeem, but it was not just HI , it was cleaning services,lawn maintenance, blind companies, etc.People wiil sell their first born for a sales lead and CB knew it.

[Nick Gromicko]

David:

As I've said many times on this message board, I don't get compensated for my work at NACHI, I am not on NACHI's payroll, I've never been on NACHI's payroll, NACHI does not accept paid advertisement, NACHI has never accepted any paid ads from anyone, none of the vendors in www.InspectorMALL.com has ever paid a penny to anyone to be there (instead we require the vendors to give NACHI member discounts, so in effect, our members collect our advertising fees in the form discounts direct to the members), no vendor has ever paid me or NACHI a penny, not once ever, all the vendors have said and will confirm that they've never even been asked for money, not once ever. Ask them and confirm if you wish.

I don't think a week goes by where some vendor, looking at our 16 million + hit/month website doesn't offer us a big fat check. We always instruct them to instead give the money directly to our members in the form of NACHI member discounts. So who is pocketing all the money?... you are David.

[David A. Andersen]

Thanks Nick!

This is my point. A lawyer can file suit against Coldwell Banker by making these acquisitions by assuming this scenario. They get all the way to court without a single bit of evidence or hard fact showing that nationally Coldwell Banker is taking money for referral services.

The fact (as you point out that you receive calls from vendors offering compensation) is what these lawyers are working off of. It happens, it exists but it's not necessarily the fact.

To reiterate, this is not an accusation against you or NACHI!
Just an example of how bottom feeding lawyers come up with some of this stuff. They do it to home inspectors every day!

[David A. Andersen]

I'd been approached 3 or4 times by the local CB branch manager, these realtors just don't know how to spell COLUSION.

I have worked for about seven Coldwell Banker franchises. In 12 years, no one is ever approached me!

I don't give out perks, and I don't receive any.

[James H. Bushart]

Originally Posted by dandersen

I have worked for about seven Coldwell Banker franchises.

This certainly explains your apparent need to defend them. In any event, prosecuting attorneys usually do not prefer charges until they feel they have ample evidence to convict.

More are coming. As the mortgage defaults continue to climb and more and more "vicitims" complain of the shady dealing...there will be more and more arrests, convictions and bad press.

Here in the midwest, the electronic media reporters are clamoring for these kind of stories and it isn't even time for the May sweeps, yet.

[Michael W. Gault]

Originally Posted by dandersen

I have worked for about seven Coldwell Banker franchises. In 12 years, no one is ever approached me!

I don't give out perks, and I don't receive any.

As with any organization there are opportunities for those who somehow rise to the top who possess less moral turpitude than others within the organization.. if they have a powerful enough personality, an entire group of normally good people can be tainted by the unethical mindset 'pushed' by the leadership...

or One Bad Apple....

[Nick Gromicko]

David, good point. It's just a suit filed as of yet.

Although we all know Coldwell Banker does get paid (even by Scumbag NAHI members) via their unethical preferred vendor schemes (outlawed by many states, NACHI, and ASHI). Many Coldwell Banker brokers have dropped preferred inspector schemes lately and I hope more do too. Some Coldwell Banker brokers correctly do not allow inspectors to participate in their Concierge programs and never have.