What's the difference?

[Michael R. Boyett]

There's been several threads and a lot of talk about inspectors paying fees to be on a Realtor's list. There are numerous permutations of that scenario but most all of us agree that "pay to play' is wrong and shouldn't be tolerated.

Now, INACHI posts a new offering to members called TruCapture. See the announcement here. TruCapture has several features, one of which is a Client/Realtor cash referral program. See the screen captures below. What is the distinction that allows making a cash referral fee to a Realtor (..just the way they like it...or so it claims) for future consideration appropriate that is different from an inspector paying a fee to be on a list? I'm not looking to start anything, I just really want to know.

trucapture.pdf

[Nick Gromicko]

Email them and ask them to come here and answer your very good question.

[Chuck Evans]

No ethical difference in my mind. I won't do this referral program either.

However, it would appear that based on recent comments attributed to TREC it's only a violation of the TREC ethical standards for inspectors if the public complains about it.

[Nick Gromicko]

Chris has just given the owner of the company message board privileges here.

[James H. Bushart]

Mike - I think I see a "difference" but it does not make much of a difference.

In this thing you have brought to light, the participant pays the salesman AFTER the referral has been made.

The "preferred vendor" bribery scam requires that the inspector's bribe be paid in advance.

They are both wrong and they both violate our COE.

[Michael R. Boyett]

Originally Posted by gromicko

Email them and ask them to come here and answer your very good question.

I wouldn't have a clue as to who to e-mail. Perhaps since Chris knows who the owner of the company is then he could send quick invite to that person.

[Larry J. Michael]

They board in NC will discipline any inspector involved as a preferred vendor.

[Michael R. Boyett]

Larry, thanks for the input. Actually though, this thread is about the TruCapture offering and how its Realtor Cash Referral program operates and differs from a preferred vendor program. See post #1.

[Nick Gromicko]

Michael writes:

Perhaps since Chris knows who the owner of the company is then he could send quick invite to that person.

Co-owner is on his thread here: http://www.nachi.org/forum/f32/truca...iscount-52434/

[Michael R. Boyett]

Matt with TruCapture has been invited to come to this thread to comment on the observations/question in post #1.

[Emmanuel J. Scanlan]

Mike,

This is an affirmation of the basic tenet by which unethical and illegal businesses operate:

"It is only illegal if you get caught!".

We have already seen our own government agency proclaim that recently!

From the RESPA law (http://edocket.access.gpo.gov/cfr_20...r3500.14.htm):

TITLE 24--HOUSING AND URBAN DEVELOPMENT
(b) * * * A business entity (whether or not in an affiliate
relationship) may not pay any other business entity or the employees of
any other business entity for the referral of settlement service
business.

Both Inspectors and RE Agents/Brokers are considered settlement service providers.

[Nolan Kienitz]

Doesn't this product offering fly in the face of a recent interview with INachi in the D/FW market?


http://www.nbcdfw.com/around-town/re...ort_Worth.html

[Michael R. Boyett]

Manny...I'm anxious to see what Matt with TruCapture says. Hopefully he will tune in sometime today.

Nolan...yep, ergo the 1st sentence of the 1st post

[Matt Behrend]

This is a great question. Our referral program tool is based on the recommendation that you offer a referral bonus to a Realtor for referring another Realtor, NOT for sending you a client directly. It is a great way to get Realtors to talk about your services to other Realtors, and create some inter-office buzz.

We also suggest a referral bonus be offered to Clients for sending you their friends and family. Tracking these referrals is done automatically through our system.

Paying a Realtor directly for sending a client just doesn't sit well with us, and many of you as I have seen.

I hope this clears up our stance on the matter! Thank you!

[James H. Bushart]

Matt.....I almost agree with you, if it were not for the fact that the "realtor" who referred me to another "realtor" does not get paid his $40 until the second "realtor" sends me a customer. Can you see the problem?