To all the agents in the house,
A bill that passed the Oregon state legislature last week would outlaw informal communications from prospective buyers to sellers, derisively termed love letters. These pictures and amorous epistles can be a pain in the neck and, most of all, a legal minefield. Should they really be outlawed?
House Bill 2550 was written by Oregon representative Mark Meek, who is also a broker at Avid Real Estate Executives. The bill runs one page, with a preamble itemizing the "affirmative duties" of real estate agents.
The final (helpfully bolded!) sentence of the legislation reads: "In order to help a seller avoid selecting a buyer based on the buyer's race, color, religion, sexual orientation, national origin, marital status or familial status as prohibited by the Fair Housing Act, a seller's agent shall reject any communication other than customary documents in a real estate transaction, including photographs, provided by the buyer."
Our colleagues at RealTrends report that the powerful National Association of Realtors have warned about such non-customary documents, noting, "While these may seem harmless, these letters actually pose fair housing risks."
RealTrends runs through some "You make the call" scenarios about if something leads to a Fair Housing Act violation. One example: A prospective buyer writing to a seller, and saying she's interested in a home because a Catholic parish is within walking distance.
I am sympathetic, in such hypotheticals, to the possibility of the seller promptly responding, "That's great! I'm Catholic, too! Buy my house," a flagrant Fair Housing Act violation in the making, and one unbeknownst to the agent.
On the other hand...Isn't it the agent's job to police such communications? Isn't the agent hired to stamp out less than professional goings on in the home sales process, including dubious correspondence?
Another devil's advocate point: Could such laws end up causing agents trouble?
Let's say a prospective buyer writes a benign letter expressing interest in a home, a letter that nonetheless runs outside "customary documents," and then makes the best offer. Is it the duty of the agent to rule out that buyer?
Agents, I am curious about what you think. Do you agree with this legislation (which would become law if Oregon Gov. Kate Brown greenlights it)? And what is the extent of love letters you receive on the job?
Please write a non-love letter anonymously to mblake@housingwire.com.
Sincerely,
Matthew Blake
Senior Real Estate Reporter
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