“Purchaser love letters” gained reputation a few a long time in the past as a instrument for competing in a scorching market. Patrons hope their letter, a private and emotional attraction to the vendor, will assist their supply stand out. However lately, attorneys have urged warning in the usage of such letters, saying the knowledge in them may very well be used to discriminate. When one state took motion to cease the usage of love letters, a dealer protested—and received.
The Case: In 2021, the Oregon legislature banned purchaser love letters within the state, noting the apply may lead sellers to disclaim or select a proposal based mostly on race, faith, gender or different protected lessons, which might violate federal truthful housing legal guidelines. It was the primary such prohibition in the US. Whole Actual Property Group, an Oregon brokerage, sued the actual property commissioner, Steve Strode, and lawyer basic, Ellen Rosenblum, over the ban.
The Ruling: In March, a federal choose dominated in favor of the dealer age, saying the Oregon ban violated the First Modification. In consequence, the state’s actual property commissioner agreed to cease imposing the statute.
Though the courtroom agreed with letters, saying the knowledge within the defendants that love letters may perpetuate implicit bias and racial disparities in homeownership, it famous the letters comprise a major quantity of “innocuous info,” akin to compliments on a house’s type or a shared love of gardening. The courtroom additionally mentioned there are different methods to fight housing discrimination, akin to better enforcement of current truthful housing legal guidelines and requiring a good housing disclosure in transactions—options that don’t overly limit “in any other case lawful speech.” Ruling on the First Modification argument, the choose cited a earlier circuit courtroom case that mentioned, “It’s at all times within the public curiosity to forestall the violation of a celebration’s constitutional rights.”
Finest Practices: NAR continues to suggest that you simply advise consumers and sellers concerning the potential threat of utilizing love letters and keep away from sharing info that may very well be used to discriminate. Sellers ought to consider provides utilizing goal standards, akin to worth, timing and contingencies. As well as, brokers ought to present truthful housing coaching to brokers and staff. View NAR coaching packages right here.
What’s Subsequent: Though the Oregon ban has been struck down, legislators in different states have floated related statutes. A Rhode Island invoice is being held for additional examine, and a few Washington state lawmakers are contemplating reintroducing a stalled invoice on the difficulty.