Just Don't Do It!
September 14, 2021
Giving direct home access to customers… This is an unacceptable practice that Realtors have been guilty of for years and it unfortunately continues to this day. They may say: “It's a vacant HUD foreclosure so I’ll just give you the combo and you and your brother can just pop in and take a look” This is a big mistake with potentially serious consequences for the agent and their brokerage.
The misconception that HUD homes and other REO properties are less deserving of the same consideration afforded owner occupied/ traditional sale homes is all too common. If Realtors knew the potential consequences they may reconsider being cavalier with the access information. You wouldn’t just give the access combination for an occupied home to a buyer, so why do it for a HUD home? The answer is you don’t!
HUD homes are U.S. Government property that can only be entered and shown by licensed, registered Real Estate Agents and Brokers with their customers and or inspectors. In order to maintain the integrity and condition of the properties, HUD maintains a record of everyone that enters a HUD home with the use of a sign in sheet. Agents (and the maintenance company) are required to sign in when showing or inspecting HUD properties. This is often missed or ignored.
The consequences of giving direct access are quite severe. An agent could lose their ability to bid on and sell HUD homes into the future. Repeat offenses could result in the agent’s brokerage and all it's agents being affected. In extreme cases, the ability for the brokerage to participate in transactions involving FHA could be affected. HUD is diligent in preserving the condition of the homes as well as limiting any liabilities presented by these conditions. It makes no difference if the buyer is a first time owner occupant or and investor that has bought 20 HUD homes in the past. This is serious business folks!
There are really no reasons or circumstances that make exposing your client to possible injury or endangering the future of your brokerage worthwhile. Take the time to protect your clients and brokerage by simply following the rules.
