Thomas Huot (RE/MAX New Beginnings)

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Rainmaker
1,107,412
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

As others have said there is a difference between steering and referring and perhaps recommending a particular agent. Unfortunately it happens to our disadvantage. Ugh

Oct 06, 2017 03:31 PM
Rainmaker
905,512
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

No idea about Maryland, I suggest contacting your board or state's legal hotline.

 

Either way, I think that lender is a dick.

Oct 06, 2017 04:25 PM
Rainmaker
313,951
Peter Mohylsky
BETTER HOMES AND GARDENS REAL ESTATE - Destin, FL
Your Bucket List Broker in Destin, Fl..

Check with your local board.  It does not sound good but that is different from being "legal"

Oct 06, 2017 02:30 PM
Ambassador
2,089,743
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, it's legal - lenders do not have the same 'referral' rules that we do in either of my states (NC or SC).

And, ultimately, it's the buyers' decision.

Oct 06, 2017 07:40 PM
Rainmaker
1,255,623
Mike Cooper
Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Sales Pro

Not sure about MD law, but there are local lenders who recommend me and my company, and I do the same for some local lenders (not always those who recommend me). Ultimately, the clients make the choice, and I remind them of that. 

Oct 06, 2017 06:13 PM
Rainmaker
271,057
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Check with your local board

Oct 06, 2017 05:29 PM
Rainmaker
3,812,958
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

check with your board....

but I would think no one owns a buyer.... and unless you have a buyer agreement with that buyer, he/she is up for grabs....the lender can refer business... it's not steering, it's referring.... when you refer to another agent, that's not called steering...it's referring....and you can get a fee...the lender can't take a fee....

Oct 06, 2017 02:44 PM
Rainmaker
2,687,943
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

From what you have shared, I don't see "steering" as the issue.  I do like the way Ryan Huggins - Thousand Oaks, CA summed up his feelings on the subject.

 

Oct 08, 2017 01:38 PM
Rainmaker
504,548
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

As you mention, there is a difference in steering and referring

Oct 07, 2017 05:47 AM
Rainmaker
1,264,422
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

It is legal here in IL. But .... the LO is steering this particular buyer to an agent that will also guarantee (if possible) a closed transaction. Could also be that your buyer is complaining behind your back as you've said you've worked with that buyer for 2 years. Is that really a buyer?

Incorrect usage of 'steering' BTW.

Oct 07, 2017 05:21 AM
Rainmaker
476,328
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I would be willing to bet that it is simply bad form, unless a financial incentive was offered in which case I think that might be a problem. Did the buyer go with the other agent? If they did, after all the time you spent with them then I would say the buyer's as much of a problem as the lender. Does the other agent know that you have been working with the buyer all that time? I'll check back to see what other answers come in.

Oct 06, 2017 06:01 PM
Rainmaker
590,103
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Actually an unsigned "customer". I know lenders here that recommend certain agents. Not illegal, but it's a risk. That lender / loan officer could lose more business than they gain from that tactic.

Oct 06, 2017 04:07 PM
Rainer
389,196
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

I don't believe it is.

Oct 06, 2017 03:52 PM
Rainmaker
4,109,565
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

It happens all of the time. Have them stay with your trusted local mortgage loan officer.

Oct 06, 2017 03:14 PM
Rainmaker
1,559,167
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Probably not illegal

Oct 06, 2017 03:12 PM
Ambassador
1,776,494
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Hi, Thomas.

   As other suggested, consult the attorney for your local Board or Association.

     In my opinion, unless there is a RESPA violaton, probably not.  

    With respect, this is why we should get signed commission agreements before investing a lot of time into a customer.

Oct 06, 2017 03:06 PM
Rainmaker
2,154,084
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

What a good question...rather than opinionate, lets find out more Thomas

Oct 06, 2017 02:40 PM
Rainmaker
2,335,886
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

If you worked with them for 2 years, you shoul dhave had them signe dup to invest that much time in anyone. Shame on the lender and although nt illegal, unethical in my book and not good for business. Call them and let them know, but your buyer has flown the coup. Try calling your buyer too

Oct 07, 2017 05:03 AM
Rainmaker
2,459,807
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Another reason why it's so important to have a signed Buyer Broker Agreement...

Oct 07, 2017 04:12 AM
Rainmaker
2,165,168
Richard Weeks
Dallas, TX
REALTOR®, Broker

Don't see a legal issue here.

Oct 07, 2017 04:11 AM
Rainmaker
2,149,410
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Key word is "steer" not "refer".  I would be interested in what MD law says about it

Oct 07, 2017 04:09 AM
Rainmaker
334,199
Marnie Matarese
DWELL REAL ESTATE - Sarasota, FL
Showing you the best of Sarasota!

Here in Florida it happens frequently.  The lender has the right to "refer" just as much as anyone else does.  It is unfortunate but I don't think it is illegal.

Oct 07, 2017 03:57 AM
Rainmaker
1,967,151
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Unless the lender held a gun to your person's head, it's probably not illegal. Then again, I don'ty know anything about Maryland laws. Why have you invested two years in working with someone who is unsigned.... and they are not a "client" if unsigned. And I'd ask why after two years the person you've worked with doesn't have some sense of loyalty to you even without a signed agreement.

Oct 06, 2017 11:19 PM
Rainmaker
411,526
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Get an exclusive buyer agency agreement. Also, provide great service so they won't want to leave you.

Oct 06, 2017 08:15 PM
Rainmaker
3,095,572
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I'd check with your local board so you are clear on your question. Steering might not be the right word it might be called referring.

Oct 06, 2017 07:19 PM
Rainmaker
2,370,777
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

I'd check with your broker or real estate attorney.

Oct 06, 2017 06:33 PM
Ambassador
3,211,467
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

If there is no compensation or tie-in (Fair Housing) involved then the lender can certainly make a suggestion.

Oct 06, 2017 04:28 PM
Rainmaker
285,899
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

I would not think it's illegal but I'm not a lawyer and don't know if Maryland has rules that would state otherwise.  

In CA we have the Buyer Broker Agreement that protects our commission if completed properly and the buyer reads, understands and signs.  

If you have been working with a Buyer for 2 years, I would ask why  are they taking so long to buy and why would you continue with them without a contract?  

I would not even begin the process without this protection and if they have not bought in 2 years they probably aren't going to buy.  

I would not want to do business with that lender however.

Be sure to post the end result.  

Oct 06, 2017 04:18 PM
Rainmaker
2,145,281
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Thomas Huot Generally, it is not ethical. But check with your local board.

Oct 06, 2017 03:59 PM
Rainer
17,835
Thomas Huot
RE/MAX New Beginnings - Catonsville, MD

I looked through my books, and Googled this question of course, but could find no definite answer. My board is closed now, but I will discuss it with them on Monday.

Oct 06, 2017 02:52 PM
Ambassador
3,242,760
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

As others have said I would check with your Board.  I would think a lender could suggest an agent or more than one but certainly not require it.

Oct 06, 2017 02:51 PM
Ambassador
1,127,685
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Most state associations have a legal hotline. Your broker should also have counsel.

Oct 06, 2017 02:40 PM
Rainmaker
115,982
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I'm not sure Thomas Huot ! I usually give 3 or more lenders to my buyers and I tell them they are free to select anyone including those outside my referrals.  

Oct 08, 2017 10:43 AM
Rainmaker
434,464
Gloria Valvasori, ASA
Better Homes and Gardens Real Estate Signature Service - Streetsville, ON
Outstanding Service Since 1987 416-717-6331

Anyone can refer someone to an agent.  We are not allowed here to pay "bird dog" fess to anyone who sends business our way.... But a small gift card to say thank you might be appropriate.

Oct 08, 2017 06:09 AM
Rainmaker
261,214
Melissa Jackson
United Country Real Estate FW - Fort Worth, TX
REALTOR® Matching Buyers & Sellers

It happens. Lender could say they referred not steered the client.

Oct 07, 2017 08:55 PM
Rainmaker
397,559
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

I don't think it would be considered "steering" in the legal sense. When someone asks for a plumber, I refer them tothe plumbers I think are the best. I don't see anything wrong with referring them to a particular person.

Oct 07, 2017 01:55 PM
Ambassador
2,576,300
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

that's not steering, it's called recommending and I think it's perfectly legal.

Oct 07, 2017 10:34 AM
Rainmaker
1,345,523
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Sounds like that lender won't be in business long. They need to offer up at least three coices of recommended agents and let the buyer decide. No idea about Maryland Law

Oct 07, 2017 10:26 AM
Rainmaker
2,254,862
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

No law against offering an opinion. I would let that lender know you are anxious to return the favor! Maybe his boss to

Oct 07, 2017 07:07 AM
Rainmaker
778,628
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

I would be careful using the word "steering" for any matter.

Oct 07, 2017 06:51 AM
Rainmaker
656,960
Jennifer Mackay
Keller Williams Success Realty - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Can you prove steering?

If not, perhaps it was just a recommendation?

Nothing else to do if you can't prove it - move on

Oct 07, 2017 06:08 AM
Rainmaker
3,777,365
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't think there's a law unless there's compensation involved.

Oct 07, 2017 05:41 AM
Rainmaker
750,894
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 More like agent insists some other loan person to qualify a well qualified buyer. An all cash buyer will upset that  ALL CASH offers were not be reviewed until that loan agent looks over. 

Oct 06, 2017 06:04 PM
Ambassador
2,960,525
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Very few lawyers here, but your association will have someone who will know.  It is important to get that agency agreement signed.

Oct 06, 2017 05:13 PM
Rainmaker
3,215,287
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Depends on why the lender is steering to a certain agent,.

Oct 06, 2017 05:06 PM
Rainmaker
1,141,446
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

It is just a referral, you would do the same referring your client to your preferred lender( if you have one or few). If you already have relationship( and hopefully buyer representation signed), just talk to your client and explain that they have no obligation to use a lender recommended agent. 

Oct 08, 2017 02:47 PM
Ambassador
3,510,063
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

It is an attorney question, Thomas Huot.

Oct 07, 2017 11:45 PM
Rainmaker
606,297
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It's a referral, not steering, the clients have a choice. Get them signed up (although that doesn't always guarantee anything either).

Oct 07, 2017 09:54 AM
Rainmaker
3,280,822
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding and Marketing

Thomas,

Check with your board, and the lenders we know do not do that. A

Oct 07, 2017 07:12 AM
Rainmaker
3,598,257
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Legal question.

Oct 06, 2017 04:44 PM
Rainmaker
3,085,300
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I know some of our local lenders refer out REALTORS, and know they are not under the same rules we have as REALTORS.

Oct 10, 2017 07:10 PM
Rainer
37,323
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

Having been in the mortgage business 48 years and my wife a Realtor for 38 years....I DO NOT steer any business her way. It is not illegal,but certainly unethical. We both do very,very well financially, I would not want to lose business over a  few deals a year.

Oct 10, 2017 10:01 AM
Rainmaker
2,252,974
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I refer 3 in everything and that is not steering.

 

Oct 09, 2017 05:08 PM