I am a realtor and was wondering if it against the law or unethical for me to give prior clients gifts(gift cards, etc..) if they refer someone they know to me to be their realtor? Is it okay to let prior clients know this upfront? "Any clients that you refer to me I will buy you dinner"
It can be considered a violation of HUD RESPA, Section 8.
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January 24th, 2009 at 7:10 pm
No, that is perfectly legal and very common.
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January 24th, 2009 at 7:15 pm
well i dont see whats wrong with giving free gifts and besides its like a promotion "buy one get one free" besides if you want to be careful you can put a disclamier on the bottom saying "if you dont want the FREE gift just tell me so"
(hell i love free gifts and free samples im a cheap asian lol)
i mean you really cant be mad at a person for giving you a free gift. the worst thing they can do is not accept it
in chinse culture, when going to a party its proper to give the host family a gift of appreciation
well i hope this helps
(if you want to be REALLY safe, just ask a lawyer)
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im chinese and i like free stuff
January 24th, 2009 at 7:23 pm
that's ok!
sometimes that's a good way of getting new clients. I don't see anything wrong in giving gifts. They would not recommend you if you're not good. That's just a way of you saying thank you for giving me this client.
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January 24th, 2009 at 7:29 pm
I am in sales also. I like to give my clients a gift in advance and that way they will always remember me, whether they buy from me or not.
I always feel good for giving. I try to select things that I believe that they would enjoy. Most people love special food treats, such as fresh baked chocolate chip cookies or cupcakes that I make. I also find unusual items that I give to them, after I have talked with them and found out what they like, such as special tea blends (not the ones in the grocery). Gift cards are a very popular way to treat people also.
I learned a long time ago that people are always surprised at the gift.
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January 24th, 2009 at 7:41 pm
cards; yes; gifts, risky. IF your state dept of RE can tie your gifts
to a payment…….you can be brought on charges.
YOU would not do so without getting clearance form your broker.
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RE broker
January 24th, 2009 at 7:50 pm
It can be considered a violation of HUD RESPA, Section 8.
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January 24th, 2009 at 8:45 pm
Go carefully here, especially with letting clients know this up front. I think it's called "bird dog" fees and it is not legal where I am. Now if a former client recommends a friend and the friend buys or sells it is perfectly reasonable to take them all out to dinner to celebrate.
Check with your broker for the rules in your area.
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February 1st, 2009 at 5:49 pm
I am a Compliance Specialist with the Department of Housing and Urban Development, Office of RESPA. I am glad to see that you are asking questions regarding referrals. Regarding the question original question about taking a buyer out to dinner for each referral, you may wish to learn a bit more about RESPA.
The giving and receiving of a “thing of value” for the referral of business is expressely prohibited by Section 8(a) of RESPA. A “thing of value” includes dinners.
Please visit the RESPA website at http://www.hud.gov\respa for more information.