Are you aware of tying arrangements and the risk they pose to agents? You need to be careful when tying a buying and selling transaction together with the same client.
Thinking about a career in San Diego real estate sales?
Email me today for a private San Diego real estate career consultation.
Email me today for a private San Diego real estate career consultation.
Most agents know about tying arrangements, they just don't know what they’re called.
A tying arrangement is when we talk to a client who wants to put an offer in on a property and we ask if they will list their home with us. Any time you tie two transactions together, you put yourself at risk for an antitrust violation.
“
”
This can put you at serious risk for antitrust violations.
”
The biggest instance where this can show up for agents is when an agent takes a listing and the buyer says 'If I sell this house with you and buy the next one, will you give me a discount?' Agents can't sell a house for a client and buy the next one with them at a discount.
It's a tying arrangement and it just can't be done. If you want to give them a discount independently of their ability to perform on two transactions, it's your money and you can do what you want with it. You just can't tie two transactions together.
If you have any other questions about tying arrangements or any transactional violations, give me a call or send me an email. I'm here to help.
