Residential Service Company
Relationship with residential service companies and the best practices related to it. There’s a document for this. We’re going to show it off here in just a second. We’re going to get the screen ready and we’re going to share it. But that is Shana Acquisto. She’s a luxury real estate broker and she’s going to describe this agreement and what it means and how you have to disclose it.
Yes. So there’s been some questions on this document. We’ve been seeing them recently. They’ve been around forever and ever. But I think we’re going to pay we’re going to take a minute and and pay extra attention to this. OK, so you guys understand what it is. So you may see these come over when you have you may have a listing for the listing agent and your buyer sends over the contract and this is added in there. Well, that’s not one of our documents. Well, no, it’s not. It is not.
But it is required by that person because they are receiving compensation from a company, a residential home warranty, basically company, Hollum, Residential, you know, service companies. But so when you see this, what this means, there’s going to be four more boxes there. So on the left here, you see that other broker agent receives compensation from the following residential service company. So if someone is receiving compensation from one of these companies, they have to not only disclose it, they have to tell what service they are providing. So you see there’s two boxes. Either they do receive compensation or they don’t.
So if you read this, you’ll see that it’ll come over and they’ve checked the buyer’s agent, the broker’s agent. And if you’re the listing agent, you’re going to be on the right side. And you can say if you receive compensation or not, if you don’t just check it, it’s totally fine. But it’s something that has to be acknowledged by the by the buyer and the seller. They have to be notified of this.
So all the residential home warranty companies are they have to be registered or licensed with with track. Right. So they fall under the truck umbrella. So, you know, they have a lot of guidelines and things that they have to follow as well.
So if we come back over here and have a quick discussion about this and how you fill it out, we received no compensation. So we declined. We declined that at each turn. And I think that really says a lot.
We we get this right. I don’t know, solicitation a lot that, hey, we can provide this we can provide that for you and actually we’ll pay you for it. And years and years ago, there were many companies that would that would do that not only home warranty, but I think it was Verizon for security, ADT. Different people would offer you compensation if you would give them something. So let’s talk about that for a minute. What is that something that they’re getting? What’s probably the most valuable thing that someone can get right now? Well, as your data. Data is super important.
So if you if you noticed on that form, it said what services they’re providing home data collection form. Mm hmm. Education and marketing.
Ok, so it’s more marketing and more data collection, and sometimes it received direct compensation. So here we made a decision quite a long time ago that we accept none of that. We don’t want to be bought for some minor amount. So they’re receiving like twenty five bucks or fifty dollars worth of value on a transaction into me. Simply not worth it. It’s definitely not worth the record keeping. It’s definitely not worth compromising your client’s data. Imagine that you go through a transaction, you help a family buy a nice seven hundred and fifty thousand on their home and you receive twenty five bucks and you forfeit all of their data
And you give it all out for 25 dollars.
What why in the world would you ever do that? Does that feel good to you. Would you want your personal data sold. Would you want it shared. Would you want to put it all over the place for no good reason? That’s why it has to be disclosed. So they’re disclosing that because it’s stupid. See why. And frankly, if anyone out there is doing it, I think it’s ridiculous.
Why would you possibly take and monetize your client and sell them out for twenty five bucks? So if you’re one of the companies and you fill this form out and you check, yes. You’re on notice that I’m like, that’s dumb, just flat out dumb and not right to do to your client. And if you’re doing it, just know that. Right. That’s how I feel. And I mean, really just think about it. You’re going to sell your client for that money.
What do we stand for? Right. And Dad is being sold all the time. And our privacy is being compromised and just we’re not giving in to that.
So I’d like a list of all the people that sell data and I want to put a list together. So any time one of these forms comes across. Stacey, let me know. And we’re going to put a list together of all the people that sell that. And I’m going to publish it and say that you’re on my list just the same way that I have a Cheney unit with Jeff Cheney and he’s putting all these luxury apartments around. And then in 20 years, they’re going to look super bad. I want to put a list out of people that are actually going out there and actively selling clients data.
I think it’s a big point. You talk about all these different firms out there and what they stand for. And I’ll tell you what we stand for. We stand for privacy. We stand for you as an agent, working hard and doing the right thing for your client and to make sure that your client has a great experience and we stand up for them at each turn, not selling them out for a couple of bucks or providing their data to somebody else for no good reason.
Not acceptable. You’re on notice. Let’s get a list together. Who’s on board? All right. And sometimes it matters what you do, what you stand for, you know what you are. And we we truly believe in this industry. We truly believe in the agents that are part of our family. And we try to do the right thing every day. Sometimes we get challenged. It’s difficult, but this is a no brainer.
So going back to it, it’s OK. You’re not obligated to your client anything. And actually if you get something like that, read it because it’s very self-explanatory. Do you receive compensation to know. Check that. And that’s a great opportunity to have a conversation with your client that you’re having to sign that’s signing it to say, hey, this is kind of what’s going on here. We don’t do that as a company. And it’s another value add. I think they would respect that.
No, they totally will. No one likes to , and they don’t understand what it is. And they’re relying on you as the agent to explain to them what it is. So explain it. And if you have any questions on that, we’ll talk about it.
But it doesn’t say where it even goes. But they’re selling your data out for pricing for all these different things, for people to sell your vacations, for people to send you over things like go look at this place and get a pair of golf clubs to go look at this condo or look at this MLM scam or just do so many things and it’s just not acceptable. I’m going to need to calm down here, Shana.
Episode Recorded Live on YouTube 7.8.21