40. Promotions

Opinion Letter 92-32 (Phil Oddo) RPL §442 does not prohibit the amendment of a negotiated fee to provide a "gift"; any such arrangement by sales associate must be approved by the broker

164 DOS 92 Matter of Christiana & Manor Homes by Blake - sellers offered participation in "Gold Rush" incentive program; pay $250 extra to fund, accumulated until 49 sellers participate; drawing held for $10,000 to winning selling broker. Violates Declaratory Ruling 91-2; reliance on attorney advice no excuse, but mitigates intent

Opinion Letter 93-9 (William Dye) - savings bond may be furnished to buyer by BB or by seller (with pro tantoreduction in commission from seller), but LB can't directly pay for bond for buyer

Opinion Letter 93-21 (Robert Jacobsen) - lawful to provide seller with two free airline tickets at time sale closes; promotion is equivalent to a negotiated reduction in the listing commission

Opinion Letter June 5, 1995 (Marc Gold) - Promotion whereby broker donates $200.00 to a charity of seller's choice is not fee-splitting under RPL §442, as not given for assistance provided in bringing about sale. Nor is it a kick-back as commissions are freely negotiable and broker may use promotional incentive as part of the commission agreement

Opinion Letter June 8, 1995 (Casandra Zappala) - Promotion whereby broker offers to pay seller's local moving services is permissible where it is made a part of the listing agreement with the seller

Opinion Letter October 3, 1995 (Albert Kraft) - Promotions; restricted offer to sellers of $100.00 for listing home for sale with broker is not a kick-back prohibited by RPL §442 where the thing of value to be given is negotiated and agreed to in advance of closing and is due unconditionally. Population eligible to promotion may be limited

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