e060217 Can inspectors offer raffles/drawings to real estate agents who refer an inspector business?

Identifier: e060217

Date: 04/27/2006

Question

Is it ethical for an inspector to offer a promotional free vacation contest if a participant must use the inspector's company to obtain "tickets" to register for the drawing?

Response

If the promotional contest is offered to real estate agents, contingent upon providing client referrals to the inspector, it would be considered a form of compensation for such referrals, in violation of 1.C of the Code of Ethics. Paying a real estate broker for referrals, in whatever form, including a vacation contest, could bring into question the integrity of the inspection itself, in the eyes of the consumer.  Secondly, home inspection clients should be able to have confidence that the referral of a home inspector by their real estate broker is based on an assessment of the inspector's competence and professionalism, rather than on the potential receipt of a financial incentive by the referring party.

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