Realtors getting Kickbacks

What is the name of your state? Indiana

I work for a company that deals with termite inspections and pest control services. It has come to our attention that Realtors in our area are demaneding that their clients use only company X for their pest control needs (i.e. inspections and termite treatments). We have been told this from the few customers we do get from real-estate sales these days.

I can only assume that the reason why the Realtors are trying to force company X onto their clients is because the Realtors are getting a kickback or a finder's fee.

My question is, is this legal? If not, who would I notify?

Thank You,
Wex

Realtors can suggest company x, maybe theyre cheaper in price than your company. You need proof.

Back when I was a Realtor, we really recommended three certain basement specialist.(run by engineers) Why? Because the other ones had "sales teams" who'd get in a house and way overstate what the basement problem was and always try to sell them a BIG basement job (which the saleperson got a commission on) , implying the whole house would eventually collapse if they didn't. These were often homes that had modest problems, but the basement people from THESE three companies always tried to sell a huge project. Which, of course, blew the deal. These big basement companies would insist on a 25,000 price tag, but the guys we knew had practical knowledge of how to accomplish what was needed for maybe $5,000.

That is why we used them. WE recieved nothing but the satisfaction of knowing the sellers/buyers weren't ripped off.

You say "demanding" and "forcing". Yet you also say this information was told to you by customers from real estate deals, so I guess those buyers didn't feel too forced into a different company or they would not be using you. So, their agent tried to force them into a different company and they decided to go with you >? Our Real estate agent recomended lots of companies to us throughtout the building process and there is nothing wrong with that.

We have been in business for over 30 years in the same community. We do not trick people into doing jobs (that is morally wrong and we could get into trouble). We are competive in prices if not cheaper than company X. The only reason why some of our clients do not use company X is because they know us personally. As I stated before, these people have told us that the realtor is demaneding that company X only be able to do the work. They are not listing 2 or 3 companies, only 1 and there are lots of pest control companies around this area.

We have observed the work of Company X and it is questionable at best.

This is not an isolated incendent either. This has been going on for over a year now.

My original question was is getting Kickbacks legal and who do I notify?

Thank you

Here is the issue, you say that these homeowners have told you that their REA has demanded or told these people to use this one company however you are just assuming that company X is giving the REA a kickback there is no way that these homeowners would know weather or not the REA was being paid to advise someone to use this one company. I am not certian if it's illegal or not but even if it was how do you plan on proving that the agents are being paid to recomend a certian company. Are all the real estate agents in your area forcing all the home buyers to use this one company or just a certain agency?

Your state attorney's office would know if this is allowed or not and what you would need to prove prior to them looking into it.

From the Code of Ethics and Standards of Practice for Realtors

Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm direct result of such recommendation. (Amended 1/99)

• Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
may receive as a

PghREA said:

From the Code of Ethics and Standards of Practice for Realtors

Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm direct result of such recommendation. (Amended 1/99)

• Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
may receive as a

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GREAT RESPONSE........additionally,

Link to your state's Real Estate Commission:

http://www.in.gov/pla/bandc/estate/