It’s been common for a while that real estate agents and brokers must disclose if they have any affiliated business arrangements with title, escrow, or financial institutions involved in a transaction. Also, agents are required to disclose if any other service they provide or refer gives compensation to the agent in return for the business. Examples would be cleaning services, staging companies, etc.
Now, this has spread to familial or business relationships with property inspectors. Typically I would think that this would be normal if there was some ownership of family relationship but it has spread to include if the home inspector has ever used the agent’s services in the past. I find that part a bit odd.
I’ve got many property inspectors who I know, having met them over the years we’ve been in business, and we list several on our website that our clients can choose from if they don’t have a preferred person of their own. One of those inspectors who we met originally via a client, and then again through the Seattle Chamber of Commerce, has used our services in the past but only because he saw over the years how we treated our clients and the level of professionalism that we offered. So far we have only done a couple of transactions together and none of these have had any sway over how we might do business with one of my own clients. But, we’ll create the disclosure form nonetheless and abide by the new rules.
What are your thoughts on this new rule?
