Post Closing Information

**richardawood** · 04-16-2009, 01:48 PM

Hello all, this is my first & second post (No Answers the first time). I have a question concerning post closing cross-selling? I don't know if it is allowed, but it seems like a great opportunity if it is. I know you are not allowed to receive any direct compensation from a third party during a real estate transaction, but what about after closing? There are services such as home security contracts, termite service contracts, life insurance, etc. that are needed after closing. Can you receive referral compensation from third parties AFTER the transaction? Thanks in advance.

**First Time Home Buyers** · 04-21-2009, 11:45 AM

If it relates to the transaction in any way and isn't reported on the HUD, it's against the law, to my knowledge.

What kind of things are you actually looking to be getting for compensation?

**richardawood** · 04-21-2009, 01:14 PM

Here's an example: Brinks Home Security has a special promotion right now. Brinks gives compensation for all referrals. If I go to a past client and ask if they would be interested in the Brinks special promotion, and they say "yes," am I allowed to receive the referral? This can be applied to multiple scenarios: Termite contracts, carpet cleaning, power wash companies, landscaping companies, even cable/communication companies offer them.
This is called cross-selling and it would be done after closing. What do you think?

**REITrainingWhse** · 04-22-2009, 11:07 AM

Hey, what is wrong with providing a service to "marry" homeowners with vendors where it makes sense?

Like you said, there are several companies out there that offer benefits to recent homebuyers, and other homeowners, which give referral compensation. So, if you have a list of leads, be them qualified (meaning they "raised their hands" as someone interested in buying the service/product) or unqualified leads (people in the list that may or may not buy the service/product,) why not sell the list to vendors? Perfectly legal. All you need to do is make sure that you asked the people on the list if they would be interested in recieving discounts and promotions from companies providing services and products that would benefit them.

If you wanted to go a step further, you could pre-qualify your leads, by asking them some pre-qualifying questions, but if you just asked them if it would be okay to give their name to someone who is willing to give them special discounts and promotions, you are fine.

The question you asked has nothing to do with the closing of the property, and therefore has nothing to do with the HUD-1.

Make sense?

Michael Suess
The REI Training Warehouse, LLC