The case is set for trial later this week. Here's a cute piece produced by KCPA driving home its point that criminal sanctions are entirely inappropriate in this context. KCPA has been threatened, among other things, with prosecution under Section 339.170, RSMo, which makes it a Class B misdemeanor (punishable by up to six months in prison) to knowingly violate any of the prohibitions relating to the communication of real estate information.
Want to learn more? Here's an op-ed recently penned by KCPA's President:
Real Estate Commission Criminalizes Helpful AdviceCan you believe that your own mother might be considered a criminal for helping you find a suitable apartment? That’s the position taken by the head of the Missouri Real Estate Commission (MREC), the government agency currently trying to ensure that people must pay a licensed real estate broker if they want help finding information about rental opportunities.
Years ago, I started Kansas City Premier Apartments (KCPA), a business designed to help people access a vast amount of useful information about renting in Kansas City, including a website with a searchable database of available rental units and a customer service team familiar with Greater Kansas City to help answer prospective renters’ questions, set appointments, and provide driving directions. All of our informational services are offered at no charge to the prospective renters.
The website quickly attracted the attention of people worldwide looking for just the sort of assistance we offer, helping them avoid the stress and uncertainty that frequently accompanies the search for a new rental home. Many have offered testimonials praising our services and, to our knowledge, no one we have assisted has ever expressed dissatisfaction with the information our company provided them. But, unfortunately, our business also attracted the attention of the MREC, which has asked a local court to prevent us from providing our informational services.
Fortunately, Americans enjoy constitutional protections for our freedom to exchange information and opinions – and KCPA is fighting to ensure that everyone will continue to enjoy these freedoms. The First Amendment of the United States Constitution denies governments the authority to make laws “abridging the freedom of speech.” Furthermore, the United States Supreme Court has previously recognized that this protects not only the rights of speakers who would share truthful, non-misleading information, but also the rights of those interested in hearing that information. Interpreting the First Amendment, courts have also held that governments are not generally permitted to pick and choose who is permitted to share a particular type of information. Missouri’s constitution offers even broader protections, stating that speech cannot be restricted “no matter by what means communicated; that every person shall be free to say, write, or publish, or otherwise communicate whatever he will on any subject, being responsible for all abuses of that liberty.”
We asked the MREC to explain how the useful information we provide could be considered an “abuse” of our constitutional freedoms. Rather than offering a substantive answer, the MREC responded that our question was “not relevant”. Fortunately, government bureaucrats do not have the final say in whether our constitutional freedoms can be so flippantly disregarded. We are both hopeful and confident that when the judge considers this matter, he will rule that all Missourians must remain free to enrich each others’ lives through the communication of useful information and ideas.
Tiffany Lewis is the President of Kansas City Premier Apartments, Inc.
Interpreting the First Amendment, courts have also held that governments are not generally permitted to pick and choose who is permitted to share a particular type of information.
ReplyDeleteI don't get the First amendment angle. This is what I see.
ReplyDeleteCan you believe that your own mother might be considered a criminal for helping you find a suitable apartment?
Ensure that people must pay a licensed real estate broker if they want help finding information about rental opportunities.
v.
All of our informational services are offered at no charge to the prospective renters.
my comment
I agree with the MO authorities when they demand that only specially licensed brokers can collect fees.
These licensed brokers can collect fees from either landlords or tenants.
The Apartment people say they only take a fee from the landlord side and that makes them except.
That is not the point.
The argument, as presented on the example above is flawed.
Your mother is helping you find an apartment, and yes you can buy her lunch.
What you can't do is make your mother your apartment manager, where she writes advertising for the apartments with out having a license.
If she crosses the line, the injured parties would have no recourse, if she does not have a license.
With a license, the MO authorities can pull her license and stop her from hurting people.
Read the paragraph.
On the first part you are talking about helping people (tenants) find an apartment.
On the second part, the broker that got paid is not helping renters but helping the landlord fill the vacancies.
The MO authorities don't want slum lords to use deceptive advertising to attract tenants and their mothers. I think the case is clear and I am willing to bet that the licensing requirements will stand.
I am a RE Broker in a College Town in California and I thought about having a little rental list to pass around beer halls.
The reason I did not do it is because although I am a Real Estate broker, my license does not cover that. I need a special or additional license to be a broker that publishes a list for landlords.
After long consideration I did see their point.
Here is how it works in California.
Prepaid Rental Listing Service
An individual real estate broker or a corporation may obtain, without examination, a two-year license to conduct PRLS activities.
A Prepaid Rental Listing Service (PRLS) license is required for the business of supplying prospective tenants with listings of residential real property for tenancy while collecting a fee at the same time or in advance of when the listings are supplied.
Negotiation of the rental of property is not a part of this activity.
CA DRE website: http://www.dre.ca.gov/lic_prls.html
Realty Czar