Beware of Buyer Love Letters
According to the Fair Housing Act, it is illegal to deny housing to individuals based on race, religion, color, national origin, sex, familial status, or disability. A seller who accepts an offer to purchase or lease based on personal correspondence from a buyer or tenant is in danger of a fair housing violation.
This correspondence often referred to as a "Love Letter", reveals personal information and characteristics of the buyer designed to create a connection with the seller in hopes that this will entice the seller to select this buyer's offer over another offer. By way of example, a buyer may tell the seller how they envision their children running down the stairs on Christmas morning for years to come in this house. A seller who chooses, or is swayed to choose, this buyer based on this letter, rather than on objective criteria such as price and other agreement terms, may have knowingly or through unconscious bias, chosen this buyer based on familial status or religion.
There is potential liability for agents in these situations as well. When faced with the buyer "Love Letters"
NAR recommends:
- Educating your clients about the fair housing laws and the pitfalls of the buyer "love letters".
- Reminding your clients that their decision to accept or reject an offer should be based on objective criteria only.
- If your client insists on drafting a buyer "love letter", do not help your client draft or deliver it.
- Avoid reading any "love letter" drafted or received by your client.
- Document all offers received and the seller's objective reason for accepting an offer.
Click here for a revised Fair Housing Customizable flyer that includes a talking point on "Love Letters". Use this and
other customizable flyers with clients (and potential clients) on a number of real estate issues.