A Warning on Real Estate “Love Letters”

The housing market is tight. So much so that you may have been reading about a new twist: people who are looking for houses are sending “love letters” to sellers, telling them why they are the ideal people to buy the house. 

These letters are definitely not as innocuous – or potentially charming – as they might seem, as the Wall Street Journal pointed out in a well-written story.

While this phenomenon is not as widespread in rentals as it is in purchase situations, the same risks apply.   The risk, simply put, is that acting on one of these endearing letters could result in major trouble, putting a homeowner at risk of “enabling discrimination”  -- whether the contemplated transaction is buying or renting.

The story noted the case of a letter from an anxious buyer who noted that he and the seller went to the same college.   That seemingly innocent statement could result in a seller being accused of violating  “the federal Fair Housing Act by choosing a buyer based on a protected class, such as race, religion, or nationality. The law includes seven protected classes, and some states and localities have additional protected categories.”

A blog post from the Sloan Law Firm, cheekily titled “Real Estate Love Letters: A Heartfelt Enticement or a Forbidden Affair,” lays out the dos and don’ts.  It’s fine if a letter “expresses admiration for a particular architectural style,” but when a letter “includes a family photo, references to the number of children in a family, or a note that the property is close to the buyer’s church, it unwittingly inserts information into the transaction that a seller is not legally permitted to consider and possibly exposes the seller to allegations of discrimination if the sellers opt not to sell to that buyer.”

Even statements in a letter like “This dining room is perfect for our big family,” or “This layout is perfect for our daughter’s wheelchair,” cannot be legally considered.

The National Association of Realtors has also warned against this technique.

So if you’re renting out your home, be super-cautious about even reading a love letter.  Instead, if you want to find someone who will love your home we’d like to introduce you to Belong.

Belong is turning everything about traditional property management upside down. 

We’ll find you the right residents, those ready to love your house and make a life there,  and also tell you exactly how much to price your house.  We have a super-smart Price Optimization technology that understands neighborhood uniqueness. And of course, we manage the whole process for you. 

In the long run, you’ll be the one writing a love letter — to Belong.

Disclaimer: This piece is not intended to provide legal advice of any kind and we advise you to consult your attorney before making any decisions with regard to any issues described or raised herein.