Handling Hearsay

If you are told something that is hearsay from a neighbor or other person regarding the property, that information may or may not be of concern to your client.  Even if unsubstantiated, the information must be communicated. How you communicate it is very important.

Examples of Hearsay:

• You represent the Buyer on the purchase of a home.  A neighbor tells you, “that Seller used to grow pot in their house (or backyard).”
• A neighbor says, “the cops sure have been over to that house a lot lately.”
• You somehow meet a former owner of the house and they tell you, “when I used to live here _____________ [fill in the blank with anything negative].”
• You as the agent do not know if what is being told to you is true or not.
• You do not have the responsibility or the wherewithal to investigate these items.
• Your client may be concerned and may want to investigate further.  Do not hide hearsay from your client.

What Agent should do: 

1. Send an email to your client and copy it to the transaction in Command. Email has three parts:
   1. Agent has heard (state what was told to you, who told you, and when).
   2. Agent has not verified.
   3. Buyer to investigate.
2. Examples of Emails:

• Neighbor, [insert name of person providing hearsay], who lives at [insert street name], told me on [insert date and time] that the previous owners used to grow marijuana in the house you are purchasing.  I have not verified if this is true or not.  If you have concerns you will need to investigate this further.
• Yesterday [insert date and time] when I was door knocking in the neighborhood, I met a former owner of the house you are in escrow on, [insert name of person providing hearsay].  He told me that the neighborhood sewer systems back up during heavy rains. I have not verified if this is true or not.  If you have concerns you will need to investigate this further.