Legal do-not-call maneuver targets real estate brokers

ORLANDO, Fla. – Nov. 30, 2006 – A legal maneuver targeting real estate brokers has left business owners trying to decide between two bad options: Paying $4,500 to make the problem go away or paying even more to defend themselves in court.

Federal regulations require businesses that make marketing calls to create an internal do-not-call policy and send a copy to anyone upon request. A private citizen, capitalizing on this rule, has called a number of brokers nationally, including some in Florida, and made this legal request. When the brokers didn’t comply quickly, the caller threatened a lawsuit but simultaneously offered to settle for $4,500.

In most or all cases, the brokerage had never contacted the caller, nor did it intend to do so. Still, any U.S. company that makes marketing phone calls to residential phone numbers must, under federal law, create and maintain an internal do-not-call policy and send it out upon request.

“Your best defense to avoid this problem is to create an internal do-not-call policy and make sure all associates understand that it exists,” says Randy Schwartz, Florida Association of Realtors®’ (FAR) vice president of law and policy and general counsel. “And if anyone calls your office and requests a copy of your internal do-not-call policy – even if that caller is not a current or potential client – immediately send it to them.”

For many brokers, it’s an economic decision. According to the National Association of Realtors®’ (NAR) guidelines on this problem, the caller’s timeframe could be challenged. He gives real estate brokers five days to respond to his request even though federal law only requires a “reasonable amount of time following the consumer's request.” The law also gives a company 30 days to add a consumer’s phone number to its internal do-not-call list after a request has been made. But fighting a case could be expensive and time-consuming, pressuring many brokers to pay the fee rather than fight.

FAR’s do-not-call compliance tool, a free benefit for members ($50 set-up fee for brokers), includes the development of an internal do-not-call policy within the program.

In addition, NAR offers legal advice about this problem on its member Web site (password protected) at http://www.realtor.org/letterlw.nsf/pages/1106dncalert, including a sample internal do-not-call policy.

If you have questions, consult FAR’s Legal Hotline, a free service (except for any long distance charges) for FAR members at 407-438-1409.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

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