My Association makes it very clear in our Code of Ethics, that giving away big screen TVs or a trip to Hawaii for those who list with us is not ethical. The specific clause follows (italics added):
Standard of Practice 12-3
The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the REALTOR® making the offer. However, REALTORS® must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the REALTOR®'s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice. (Amended 1/95)
I was approached by a client who listed his home hoping to get a free screen TV. The home didn't sell (it was overpriced) and he didn't get the TV. He claims that the fine print (the TV gift was contingent upon the sale of the house) although logical, it was never mentioned. He remembers the following promise in the listing presentation: "To make it clear to all my clients our appreciation for their business we give all of them a free big screen TV, in hopes that they will refer us to their friends in the future..." If his memory doesn't fail him, there was no mention of contingencies.
Is this a commom practice out there? Are Realtors really "buying" their business?
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