Why does NVAR recommend that I not share the rental application with my Landlord during the screening process?

 

When screening applications for your landlord client, appreciate the gravity of that assignment. Your job is to find the best possible tenant for your client without regard to protected classifications or by means of unlawful discriminatory housing practices. Landlords, who are often inexperienced in Fair Housing rules and regulations, are far more likely to engage in illegal acts of discrimination (intentional or unintentional) than those represented by Realtors®.

By sharing the application with your client, you do yourself and the client a disservice. Not only do you diminish your value added to the transaction, you expose your client to a greater risk of Fair Housing Act violations. The fines for violating Fair Housing laws are substantial, and the societal harm from a discriminatory housing market is incalculable.

Realtors® are still obligated under Article 1 of the Code of Ethics to present all offers and counteroffers to their clients. However, that does not mean that Realtors® must provide the entire application and supporting documents to the landlord and are, in fact, not authorized to do so by the applicant (discussed below). Realtors® perform an essential screening process by only providing the landlord that which is reasonably necessary for the landlord to make an informed decision regarding the offer.

Another important consideration is whether the applicant has consented to sharing the application with the landlord. However, when an applicant submits NVAR Form K1008 (Rental Application), if they have signed the “Brokerage Disclosure” paragraph, they have authorized the Listing Broker to share with the Landlord any information necessary to make a determination, including their credit report. Still it is important to remember that Realtors® are on the frontlines of Fair Housing and play an essential role in protecting “the peace, health, safety, prosperity, and general welfare of all the inhabitants of the Commonwealth.” When viewed in this light, Realtors® should think twice before handing over the application. Discuss these issues with your clients upfront to ensure a smooth transaction.


Commercial Council