Like anything in business, there are plenty of dos and don’ts when it comes to purchasing and giving closing gifts for real estate. Below is some insight into the customary etiquette and rules both buyers, sellers and realtors should know.
Should buyers and sellers give closing gifts to realtors?
The general rule of thumb is no, not really. It’s traditionally the other way around. That said, if buyers or sellers do want to give a gift, one of the most appreciated gestures is providing your realtor with referrals and writing positive reviews online.
Should agents give closing gifts to buyers and sellers?
While, of course, closing gifts aren’t required, it’s a great way to make a positive impression, one which will encourage clients to refer their friends and family, or use you again for their next real estate transaction. In order to nail closing gifts for real estate, savvy realtors tailor them to each client’s personal interest, ensuring that the gift feels genuine.
Do realtors need to worry about violating RESPA when giving closing gifts?
In Section 8 of the Real Estate Settlement Procedures Act (RESPA), it says that “no person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or a part of a real estate settlement service involving a federally related mortgage loan shall be referred to any person.”
What this means is that any gift given as “quid pro quo,” where something is expected in return, is a violation. A closing gift, then, that comes as a simple “thank you” – with no strings attached – is perfectly fine.
Still not sure about the perfect closing gift for real estate? A handwritten thank you note is always appreciated – and a safe bet.
Disclaimer: The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Speak with a RESPA attorney in your state to make sure you comply with all applicable laws.
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