Has recruiting stepped over the line?

06 Mar

When does real estate recruiting step over the line?  Perhaps when it becomes unlawful.  Tortious interference with a business relationship is a legal concept which recognizes certain activities of this nature such as brokerages recruiting agents from other brokerages.  These tactics come in the form of sending cards and materials, inviting agents to their training programs or company functions, paying their agents to recruit, calling to compliment the agent on an accomplishment, or other tactics used to engage the target.  Are these motives sincere or are they acting in a disingenuous manner to gain their financial advantage to the detriment of another? 

Tortious Interference with Business Relationship.   A tortious interference with a business relationship is applicable when there may not have been a specific contractual relationship.    Here, one must show:

  • existence of a business relationship
  • defendant’s knowledge of the business relationship
  • defendant wrongdoer’s intentional interference causing a breach or termination of the relationship
  • damages resulting from wrongdoer’s action

Representations made that an agent’s success is directly correlated to the recruiting company’s business model could be construed as violation of NAR’s Code of Ethics, as well.  As these recruiting practices continue to ramp up, it will be interesting to see if NAR sits on the sidelines or will they call a foul in the name of fairness?  At this time, only the agent can decide whether the overtures are sincere and legitimate  or simply ploys to gain access to their services. 


Posted by on March 6, 2010 in Broker remarks


2 responses to “Has recruiting stepped over the line?

  1. realcep

    March 7, 2010 at 8:04 pm

    I have noticed this also. I have been on the outside and watched while a local agency with national connections has targeted one small local agency after another to lure away the most productive players, then, when nothing is left, offered to buy the remainder of the company…probably at a fraction of it’s former value. I have no inside knowledge of the details, but that is the way it looks when one national company swallows one smaller but effective competitor after another by promises that the agent’s life will be better at the new entity. As most real estate practitioners know, it doesn’t really matter much where you hang your shingle. What matters is your dilligence in prospecting and the way you treat your clients and your ability to close the business. The office you work from is a whole lot less important. Yet these firms with national connections will tell an agent almost any story to get them to move. An agent with any brains should see that when you join one of these real estate behemoths, you must become a number. There simply isn’t another option for them to manage the large number of people.

  2. Jeff

    April 9, 2010 at 12:12 pm

    Yes I think it has. I got recruited by another company they sent a letter to the office mail box of the company I work for I think that is a little low class, I guess it is how a lot of people are taught to be in this business we are supposed to be aggresive and apparently that has carried over into recruiting as well, the line between respect and aggresive must be very thin and obscured because it seems to get crossed over a lot especialy when it comes to recruiting.


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