pay to be preferred vender

[James H. Bushart]

Originally Posted by belliott

Woah JB and settle down.

"you receive exclusive access to referrals"

Where does advertising assume this is a result?

There are used house salesmen who charge for "advertising". You pay them to "advertise" and, in return, you get their referrals. If you do not pay them for "advertising" you do not get their referrals. Their referrals go only to those who are willing to pay them for "advertising".

This so-called "advertising" grossly violates the code of ethics.

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.

There are two distinct prohibitions.

Paying to be a "preferred vendor" or "affilliated inspector" is one prohibition. "Ah," says Inspector Slick. "I am not paying to be a preferred provider. I am paying to advertise." But ... he errs in his plan since the other prohibition is to pay money (directly or indirectly) for referrals. If the payment of money assures him of referrals and the non-payment of money would exclude him from referrals, he is violating the code of ethics to pay to "advertise" under those circumstances.

Whenever you find these lists, call the broker and ask him what you need to do to get on the list. Then, ask him if he would refer anyone to you if you were not on the list. If the answer is "no" ... send the list to Nick with a record of your call. Any NACHI members on that list are subject to sanctions for their unethical activity.

[Gary Farnsworth]

Keller-Williams Overland Park, KS
Keller-Williams Prairie Village, KS

Both require you to pay a fee to deliver flyers, brochures, and place an ad in their "red book". You cannot even step into these offices unless to pay a fee. I used to do a lot of inspections with agents in these offices, but no longer even communicate with these agents without "payment".

When agents start using these "preferred inspectors" and have problems, they have no choice but to change companies, or keep using these inspectors who pay, write soft reports, and have a lack of experience.

I will not participate in these fiascos. It is dishonest, non-professional, and unethical. I believe the NAR needs to define these lists, and fine offices for promoting them.

Kyle Bush has been penalized for his actions. It will cost him short term, and in the long run. It showed his lack of respect to other professionals in his sport, his true personallity came out, and now it hurts not only him, but his whole team.

Real estate offices nationwide better think long and hard about promoting these lists.

[Dan Bowers, CMI]

Please JB -

Lets not pull my old alma-mater ASHIE into this and try to use them as a shining example. As we all know its always been do what I say not what I do.