e081012 Is it a violation of ASHI Code of Ethics Paragraph 1.c to offer real estate agents gifts of low monetary value?
Identifier: e081012
Date: 06/08/2009
Question
Is it a violation of ASHI Code of Ethics Paragraph 1.c to offer real estate agents gifts of low monetary value (less than $15 such asmovie tickets or carwash passes) as thanks for referrals or for the time spentat the inspection? I have included three examples for your consideration.
Example A: Provide movie tickets to real estate agents as thanks for their time at the inspection.
Example B: Provide movie tickets to real estate agents as thanks for the referral.
Example C: Offer to provide movie tickets to real estate agents for every referral.
Response
The committee finds that these offers do constitute a violation of the ASHI Code of Ethics Paragraph 1.C.
Previous rulings have found that providing meals and other small courtesies are a normal and accepted part of the business culture and do not constitute a form of compensation for future referrals.
However in each of the examples where movie tickets are provided to the real estate agent, they are offered as direct compensation for referrals. Even though the monetary value may be low, direct inducements for inspections are not allowed by the Code of Ethics. A home inspection is a part of a client’s due diligence in purchasing real estate. Acceptance of a referral by a client is a statement of faith by the client in the source of the referral. It is important to the client that there be no doubt that a referral for home inspection services be based on the quality of services provided. Offers of direct payments of cash or other items having a cash value in exchange for thereferral will undermine the trust placed in the professionals involved.