e050322 Can an inspector pay for advertising in a real estate office?

Identifier: e050322

Date: 09/13/2006

Question

Is it a violation of the Code of Ethics for an inspector to pay for advertising space, such as for placing brochures on a table in the agency’s offices?  There would be no guaranteed referrals or endorsement by the real estate agency.

Response

Nothing in the Code of Ethics specifically prevents an inspector from paying for the placement of advertising, such as inspection brochures in a real estate office.  This would be very similar to paying to place an ad in a real estate broker's brochure.  However, as with any payments for services or advertising with real estate agencies, there is a thin line between merely paying for a service, or paying for referrals.  If the opportunity to pay to place brochures is limited to only selected inspectors, or if the payment is out of proportion for the service provided, the placement fees would be more likely to represent a form of payment for referrals in violation of the Code.