RESPA Regulations causing the buyer to
suffer?
While I agree with with RESPA that you shouldn't funnel clients to a
particular provider (lender, title company, etc.) solely for profit, I also
believe that if you're referring a client to a provider which you feel is the
best and there is also some benefit to you or the client... that should be o.k.
as well. Unfortunately, RESPA doesn't see the light.
For instance... My brokerage has a lender (the best we can find) work in The
Homefinding Center on the weekends. This is the busiest time for us and our
clients frequently need assistance from a lender. We refer those people to the
agent we have on site. We believe this person is the best we can provide the
client. And while we're referring to the best provider available, RESPA doesn't
allow us to gain anything from the referral (not a referral fee, not a
commission split, nothing).
I've recently been considering several other options, which may not allow us
to have the best option available for the client, but which will help pay the
brokerage costs LEGALLY.
Should I provide service which is less than the best so I can gain monetarily
(and legally)??? or should I provide the best service and have our business
suffer as a result of a flawed RESPA code?
Is there another profession which doesn't allow referral fees to related
professionals? Doctors? No. Attorneys? No.
Accountants? No. Why the unrealistic expectations of real estate
professionals? Why does government (the most trustworthy of our species)
doubt our honor in referring providers to our clientele? Do we all have to
suffer for the transgressions of a few? Sounds like the democratic process
empoweing me again... not.
Cameron Novak
Corona & Riverside Short Sale
Agents
The Homefinding CenterTM
Corona, California
951-212-7479
Email Cameron Now
;)
;)
Cameron - I am not sure why it matters to the Govmt. Maybe it makes them seem like the good guys or something.
Suggestion... to get more readers and comments, you may want to include your posts within groups that are organized within AR. It also helps your google juice because others will comment and suddenly your blog will get more attention from the google bots. Just a suggestion. I see you are writing some good stuff but may never be heard from other members unless you share.