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What do you do when a non-licensed person talks shop to one of your clients...

By
Real Estate Broker/Owner with Metro Life Homes RS-78439 / BRE #01708344

What do you do when a non-licensed person talks shop to one of your clients...

I had an incident recently where a certain type of inspection company representative, without my knowledge, after me referring my client to them for an inspection, entered into a dialogue about contract, commission rates, and at one point revealed that their spouse was an agent at a certain brokerage.

Due to certain circumstances, the client thought about perhaps selling their home as a FSBO, and this inspection company representative volunteered information to my client about how some brokerages have just done the paperwork for 2%.

When I found out, I was furious.  Luckily, the client contacted me and told me that they were not comfortable with that inspection company because of the solicitation they made behind my back, and even played back a voicemail message for me to show that the rep contacted them talking about such matters.

Why, under ANY circumstances, should this person be speaking to a principle about contract, commission rates, etc., without a license, and above all, why on God's green earth should the name of the rep's spouse's broker be provided to the client?

I am bordering on consulting with C.A.R. and N.A.R. to have this person scrutinized for their actions.

What is your opinion?

Comments (233)

Stephanie Williams, Realtor Murrells Inlet
Seaside Properties - Murrells Inlet, SC

My first response was "Tell everybody and ruin his business."  After reading a few post and thinking about it some more, I really like #89.  I can't say for sure that's how I would treat it, but I think that is  the best way.  It doesn't look like the inspector owned the business, so I would definitely call the owners before I would start to bad mouth the business.  The owners may not have a clue why their business is dropping off all of the sudden.  

Sep 27, 2010 02:35 AM
Anonymous
Tracey Wibbenmeyer

This blog just brought back to my mind an inspector I know that has a daughter in the Real Estate field.  He has told me about her and how she works.  I am know wondering if he would do the same thing with a Seller to try and get her business.  I would hope not. 

I also wonder if that person's wife that is a Real Estate agent knows what her husband is doing out there.  She may not even know he is doing such things. 

I think I would make a couple of calls, one to the inspectors boss, and one to the Agent wife.  I would let them know what is going on and that your will no longer be using that company for inspections.

Tracey

Sep 27, 2010 03:20 AM
#218
Cory Kraai
Whitehall, MI

I would most definitely talk with this individual, their superiors, as well as your board and N.A.R. to have this person scrutinized.  He's really only  creating his own trouble and bad business.  His reputation will proceed him and he will lose referrals from agents, which we all know in the inspection business is a huge percentage of profit.  Some people have to learn the hard way.

Sep 27, 2010 03:39 AM
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Monitoring Unlicensed Activity is a DRE function not a C.A.R. or N.A.R.....You should report him to the DRE.....so that we start clean up our field.....I am sick and tired of watching "unlicensed" agents conduct real estate business.....this is part of why our Realtors have gotten a bad rap in this sub-prim bubble mess....unlicensed activity is wrong and we should do our part to get rid of these scumbags that have infiltrated our business more so in the past five years......let's run them out of town....I'm with you! Anybody else?  P.s. and gives the name of this inspector so the rest of us can avoid doing business with this person!  Can you tell I'm mad!  I hope you can.....Report him!

Sep 27, 2010 06:46 AM
Ryan Case
SCA Real Estate - Anaheim, CA
877-828-0710

How funny, I reblog this, and then end up sitting next to you at Raincamp. What are the odds :)

Sep 27, 2010 07:25 AM
Deb Casper
RE/MAX Results - White Bear Lake - White Bear Lake, MN
CRS, e-PRO, SFR

I'm with the majority on this one - REPORT HIM IMMEDIATELY! 

Sep 27, 2010 07:51 AM
Sean Goodro
An Inside Look - Miamisburg, OH

Next time be sure to only recommend ASHI or NAHI inspectors. Their standards prohibit solicitation of any sort. If he is a member of either of these organizations, don't hesitate to report him.

Sep 27, 2010 02:44 PM
Andrea Curtis United Country Premier Properties Certified Military Relocation Professional
United CountryPremier Properties - Harker Heights, TX
U C INTERNATIONAL DIRECTOR OF MILITARY PROPERTIES

I would report this guy immediately!  I would also let every Realtor I know and talk with what happened.  No one wants to refer someone who is basically stabbing them in the back

Sep 28, 2010 02:38 AM
Anonymous
Brenda Singletary

Great to know.  I usually attend the inspections so I haven't run into this issue.  But I will keep it in mind from now on.

Thanks for the post.

Sep 28, 2010 04:17 AM
#225
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

Guys,

With over 225 comments on this blog, it is virtually impossible for me to comment back on everyone's posts.

I initially wrote this post to gather opinions, as you can see from my last sentence "What is your opinion?"

I have decided to talk to the inspector directly to clarify what his intent was by having ANY type of discussion with the client regarding real estate contracts, commissions, etc., before taking any further action.

Will keep you posted.

 

Sep 28, 2010 04:27 AM
Rob Rosa
Berkshire Hathaway - Wethersfield, CT
Personal Real Estate Expert

I would have a long talk with that inspector, his wife (the realtor) and the realtor's broker to make it clear to them this is not acceptable!

Sep 28, 2010 02:27 PM
Patti Ann Kasper
EXIT REALTY NEXUS - Blaine, MN
Blaine & North Metro Minneapolis St Paul Real Esta

Ralph, first of all.... WOW WHAT CHUTZPAH!

The only way we will improve the overall image of our industry is if WE ALL START REPORTING THESE IDIOTS that give the rest of us a bad name.

The wife must be licensed...  Not only should you contact NAR, I would talk to your local board, your state's Dept of Commerce (or whatever department you state licenses agents) AND the wife's broker. 

That is sooooo unprofessional.

And I am sure you will never suggest that inspector again!

Thanks for the post!

Sep 29, 2010 01:57 AM
Ryan Case
Pacific Servicing - Temecula, CA

Wow, looks like you have one of the most commented on posts! Great informative blog post, report them, that's what I'd do!

Sep 29, 2010 04:07 AM
Melissa Katzenberger
Crist Collins Realty - Fayetteville, NC

I have to agree with everyone who says to report this guy.  Inspectors are supposed to abide by a certain code of ethics just like Brokers.  He was deliberately trying to steal your client, and for his wife to then also follow up - she knew exactly what she was doing.  Both of them need to be reported to your licensing board and I would contact both of their bosses as well.  If his sleazy tactics made your clients so uncomfortable, I would also suggest that they report them to your state board as well.  People like this are the reason our profession gets a bad repution.

I don't think that talking to him is going to solve anything, and for someone who will so boldly behave the way he did it probably won't even phase him.

Sep 29, 2010 08:43 AM
Alyse "Aly" Sands
AGORA Realty - Nashville, TN
It's Good To Be Home

How fortunate for you that the buyer reported this exchange.  I think you did the right thing, although, I'm betting that the offender will provide a different version of the story.  In any case, he will be aware that you know (bad inspector!).  If he's not the owner of the company, talk to the owner, too.

If he's not a licensed agent then who would everyone suggest you report him to?  What law (unethical, indeed, but he's not held to a Code of Ethics) did he violate and under what jurisdiction?  How would one prove that the licensed spouse was party to his behavior?  She (or he) may have had no idea these things were said.

Sep 29, 2010 01:10 PM
Anonymous
Jean

It sounds like there was no relationship between this realtor and the company he referred to his customer-client. Our licensing board can do nothing about this man's total inpropriety since he is not a part of the real estate industry. I work only with companies who work with me. In other words, they understand that I am giving them a referral to provide a service for my sellersor buyers. They understand that I am the person who made it possible for them to do business with my seller or buyer and I make sure that they know I have the ability to give them more business or not. The bottom line is to find businesses that want to work with you and appreciate that working together is a win-win for all concerned.

Sep 30, 2010 04:04 AM
#234
Liane Thomas, Top Listing Agent
Professional Realty Services® - Corona, CA
Bringing you Home!

Please consult CAR, in addition to practicing without a license, there is a question about price fixing. Since commissions are negotiable, they cannot fix a commission rate...

Oct 01, 2010 09:47 AM
Derrick Guevremont
Counselor Realty of Rochester - Rochester, MN
Rochester MN Homes for Sale

It wouldn't be long before everyone I knew in the real estate business wouldn't even think of calling that inspector again.  And everyone, they know, and everyone those people know, etc.

 

 

Oct 10, 2010 07:57 AM
Anonymous
Susan roscey
There's a realtor working for sellstate premiere properties David zamora who sucks never go to him for pricing they are extremely rude and dont know a thing about realstate.
Mar 26, 2011 02:23 PM
#237
Lynn B. Friedman CRS Atlanta, GA 404-617-6375
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Ralph -

What ever happend with this situation?
Just curious ...

Have a happy day -
Lynn 

Dec 03, 2012 10:30 PM