You might have received a sweet Recently for Valentine’s Day note from a loved one. That’s all fine and good for showing affection, but “love letters” can take on a different meaning in real estate.
In some cases, such letters can jeopardize a home sale and even run afoul of the Fair Housing Act.
Especially in a low-inventory market with multiple-offer situations, these letters are more common. The intent is to entice a seller to choose their offer and describe the many reasons why the seller should “pick me.”
You might be thinking, “So? What’s the big deal?” While it might seem like a creative way to get noticed by the seller, believe it or not, this practice can pose fair housing risks.
These letters often contain personal information and reveal characteristics of the buyer. Based on the letter’s contents, there could be references to the buyer’s race, religion or familial status, all of which could then be used, knowingly or through unconscious bias, by the seller as an unlawful basis for accepting or rejecting an offer.
Consider a buyer painting a verbal picture of their children running down the stairs on Christmas morning for years to come in the house. Not only does this statement reveal the potential buyer’s familial status, but also their religion, both of which are protected classes under fair housing laws.
Using protected classes as a basis to accept or reject an offer, as opposed to price and terms, would violate the Fair Housing Act.
Further, the Code of Ethics requires that “Realtors shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity. Realtors shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity.”
Since it’s hard to write a note and avoid personal details, it’s best not to write a “love letter” at all.
I urge my fellow Realtors to inform their clients of the potential pitfalls of such letters. Not only should we discourage this practice, but Realtors should also not deliver these letters, and definitely should not help draft or edit them.
In serving our clients, Realtors help them learn what’s involved in the homebuying and selling process. It’s also important to protect our clients and ourselves, from the potential liability related to these notes.
Realtors are charged to protect and promote the interest of their clients. That’s Who We R.
Greater Chattanooga Realtors is The Voice of Real Estate in Greater Chattanooga. A regional organization with more than 2,400 members, Greater Chattanooga Realtors is one of 300 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. For more information, visit www.gcar.net or call 423 698-8001.