Can John L. Scott require its agents to use only affiliated businesses, like Response and First West?
A. No. An agent may refer his client to an affiliate, so long as a written disclosure is provided at the time of referral. Additionally, while “requiring” the use of an affiliate is a violation, an agent is not precluded from promoting the benefits of using John L. Scott affiliated services or “one-stop” shopping. For instance, a JLS agent is better positioned to ensure adequate service with an affiliated service provider, than with another service provider. ********** This FAQ deals with one element of RESPA: receipt of a “thing of value.” Other FAQs will be distributed periodically dealing with other RESPA elements. If you have any questions concerning RESPA, please contact your Office Manager and they will involve John L. Scott’s legal support team, as appropriate. G:\John L.
