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#124912 - 02/22/07 11:46 AM Is this violating RESPA/HUD regulations
BPO_Man1 Offline
Member

Registered: 02/12/07
Posts: 20
Loc: My BPO world
Hello every one. This is my first post here on this awesome website and so much knowledgeable people here ive learned quite a few things here.

My question to everyone is. In the upcoming months I will be doing some advertising and wanted to know if what I will be doing is violating some laws. I am still in the process of thinking of either giving away a living room set or something that has to do with a home. But is it okay to put down as a disclaimer that the home must be worth $250000 or more for the offer to be valid. The last thing i want is some one to come up to me and tell me that they want me to help them find a mobile home that is worth $15000.

So can someone let me know if its okay to put that on my advertising. Thank you so much. Just trying to cover my behind.

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#124938 - 02/22/07 01:00 PM Re: Is this violating RESPA/HUD regulations [Re: BPO_Man1]
oakenfold Offline
Moderating
Member

Registered: 02/04/07
Posts: 73
Loc: Northern California
You are not giving us enough information....is the property a time-share, in a subdivision, new or used mobile home affixed to property, are you the seller that has hired an agent, listing agent, or is this home FSBO?

If you are simply selling the home along with the property as part of the sale itself and the furnishings are included and will go to the buyer, this does not appear to be a violation of law. Make sure you adequately define the items to be included in the sale and make your conditions known up front so the buyers can make you an offer including all the items you wish to include in the sale.

If you are giving the gifts to the selling agent, lender, escrow, title etc....then you may step into RESPA and DRE violation territory.

Please check the following:

B & P Code 17537.1. "Conditions for receiving gifts and prizes."
B & P Code 10131.7 "Mobile Home advertising criteria."
B & P Code 10140 "False advertising"
RE Regs 2799.1 "Subdivision advertising criteria"
RE Regs 2800(d)(2) "Notification of material change."
RE Regs 2811 "Time share advertising criteria."

If you want the Department to comment on your ad, then you can the DRE your ad + $40 to approve it or disapprove it.
B & P Code 10232.1 "Proposed advertising - Submission - Fee - Regulations - Duration of approval."

RESPA Section 8(a) & (b)
Good article




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#124947 - 02/22/07 01:40 PM Re: Is this violating RESPA/HUD regulations [Re: oakenfold]
BPO_Man1 Offline
Member

Registered: 02/12/07
Posts: 20
Loc: My BPO world
Oakenfold, thank you for your response.

Sorry about not including enough information on the post.

I will be marketing to SFR both buyer and sellers. If a buyer comes along and the transaction is completed then he will receive a living room set. If i help a seller sell his home then he gets a tv, examples. So both buyers and sellers will be able to take advantage of this.

I am aware that giving gifts to other industry members is a violation so that will not be happening.

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#124964 - 02/22/07 04:27 PM Re: Is this violating RESPA/HUD regulations [Re: BPO_Man1]
oakenfold Offline
Moderating
Member

Registered: 02/04/07
Posts: 73
Loc: Northern California
From what you are saying, this seems legal. Just make sure you properly disclose the conditions, terms, and an adequate description of the gift....As long as there is no false advertising.

I have seen an agent give a CLK away before.

Good luck.

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#124973 - 02/22/07 05:36 PM Re: Is this violating RESPA/HUD regulations [Re: oakenfold]
BPO_Man1 Offline
Member

Registered: 02/12/07
Posts: 20
Loc: My BPO world
Oakenfold, thanks alot for your help. Greatly appreciate it.

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#125012 - 02/22/07 10:10 PM Re: Is this violating RESPA/HUD regulations [Re: BPO_Man1]
Mr. Foreclosure Offline
Major Contributor

Registered: 09/01/06
Posts: 2834
Loc: upstate New York
Be careful that you don't set yourself a trap on possible discrimination issues. Since you will be offering this to buyers as well as sellers it would be hard to tie it to a specific property. You might want to tie it to a transaction size. Almost anything that specifies the criteria to be eligible for the gift in a manner that takes your judgement call off the table. You don't want to have to go to court to explain why an individual in a protected class got $100 dinner for two tickets and someone else (on a similar size transaction) got the $1000 big screen TV.

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#125033 - 02/22/07 11:56 PM Re: Is this violating RESPA/HUD regulations [Re: Mr. Foreclosure]
BPO_Man1 Offline
Member

Registered: 02/12/07
Posts: 20
Loc: My BPO world
Mr.Foreclosure, thank you for your response.

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#125221 - 02/24/07 02:27 PM Re: Is this violating RESPA/HUD regulations [Re: BPO_Man1]
Ron Offline
Member

Registered: 08/17/06
Posts: 30
Loc: Southwestern Pennsylvania
Something to consider....

RULES ON CONDITIONAL OFFER OF PRIZES OR GIFTS (edited)
(California Business and Professions Code section 17537)

.....The rules which apply to "gifts" are more complicated. Restrictions apply when a person notifies a recipient that he or she will receive a gift, and that as a condition of receipt, the recipient must pay any money or purchase or rent any goods or services.......

Now granted you're not giving away things willy-nilly or trying to sell timeshares, but some good LEGAL advice from a lawyer would be more than prudent here. Laws can mean anything depending on a lawyer's deciphering. These days of litigation require a more careful path than ever before. Good luck!

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#125307 - 02/25/07 09:39 AM Re: Is this violating RESPA/HUD regulations [Re: Ron]
oakenfold Offline
Moderating
Member

Registered: 02/04/07
Posts: 73
Loc: Northern California
Mr. Foreclosure has a made great point.

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