Realtors File Complaint Against FSBO Web Site
The New Hampshire Association of Realtors has filed a complaint against ISoldMyHouse.com, asking that the for-sale-by-owner Web site be sanctioned for allegedly acting as a broker without a license.
The complaint, filed with the New Hampshire Real Estate Commission, asks that the commission require ISoldMyHouse.com to repay all fees collected from New Hampshire residents and "also sanction ISMH at a level commensurate with the scope of violations demonstrated."
ISoldMyHouse general manager John F. Gallagher on Thursday said the allegations are unfounded and not rooted in truth.
The association contends ISoldMyHouse is acting as a real estate broker, not simply an advertising service. The complaint is not an attack on a Web-based business, said attorney John Sullivan, who filed the complaint on behalf of the association. He said it's simply an attempt to get the company to comply with the law.
the association alleges that ISoldMyHouse:
Lists nearly 800 New Hampshire properties and claims to sell hundreds of properties weekly.
Lists properties for a fee, has a tie-in to a national Multiple Listing Service for a fee and claims ownership of the listings.
Claims to supply pre-approved buyers.
Offers legal forms and advises sellers and buyers.
Charges fees, including charges to buyers agents.
That action can include suspending, revoking or denying a real estate license if the person in question holds one, imposing fines of up to $2,000 for each offense and/or issuing "cease and desist" orders.
I say some folks just need to get a life!
According to the Associated Press: "The complaint also raises questions concerning the business practices of East-West Mortgage, an affiliate of the http://www.ISoldMyHouse.com that screens potential home buyers for a mortgage."
According to the Massachusetts Dept of Banking, on May 26, 2004, it and the FDIC both slapped a Cease & Desist Order against Commerce Bank & Trust Co and East-West Mortgage (its wholly-owned subsidiary).
http:www.m*****.gov/dob/commerce.htm
According to ISMH's own website:
1. Sellers are not permitted to "...allow a Buyers Broker not affiliated with ISMH to approach you [and] bring you a buyer in which they are paid a fee...." (Rules)
2. To sign up for ISMH's Buyer's Broker Program, RE agents must pay a "small fee" (amount not disclosed on the website) to purchase a license to farm ISMH's listings. (Buyer's Broker Program)
3. Buyers are required to pay their buyers' agents. (Rules)
4. Sellers are not permitted to increase the price of their properties once it has been shown to potential buyers. (Rules)
5. Before they are allowed to contact sellers, buyers paying cash on homes over $100K must submit proof to ISMH that they have access to the amount of cash needed for the purchase price. (Rules)
Looks like a duck, walks like a duck, quacks like a duck. Hey, must be a duck!
Sounds like an open and shut case to me. I mean if they are "just an advertising company" what are are the rules, regulations, and extra fees for? This in addition to only being allowed to sell to "approved" brokers/agents.
Roger
Well, something must be going on here, because I just checked the site and found if bereft of any houses at all! They must have had to (or chose to) shut it down for the moment. I'm noticing more people listing property at fixed prices and solely to advertise it--not auction it--on Ebay, which isn't such a bad venue for visibility...