Client, agent, lender, General Contractor gifting: Does this exist?

[Braden Evans]

Hey curious to get seller/buyer agent or lender thoughts here:

In the RE/lender world, is client “gifting”, a common practice with agents, clients, lenders, or general contractors?

A few scenarios come to my mind:

- After a successful close of sale, a small gift to show good faith/marketing such as a $50 gift card to Home Depot?

- On the anniversary of a client close, send a small gift to re-market and keep top of mind as the agent or lender

- On holidays like 4th of July, bulk sending of small $5 gift cards to a local dessert place or something to re-market to past clients

- After a successful referral from agents, sending small gifts to your lenders, general contractors, or other agents for good will?

- After a successful remodel or project, sending a gift to your general contractor or sub-contractors?

Is this common practice? Is anyone currently doing this? How often do you do it? Would love to hear from folks who are doing this.

Thank you!

[Hamp Lee III]

Each state should have rules for what real estate agents can “gift” their clients.

This is the guidance in Texas:

Although a license holder may not pay an unlicensed person valuable consideration for referring a potential lessee or buyer, gifts of merchandise with a retail value of $50 or less are not considered valuable consideration. [Rule 535.20(a)] Therefore, a $50 gift card that is only redeemable for certain merchandise (e.g. a gift card to a restaurant or department store) is not defined as valuable consideration and is permissible. A gift card from a bank (e.g. Visa or American Express), however, which can be converted to cash is not permissible. Any amount of cash or a credit or bonus toward rent owed is also not allowed as a reward for a referral.

Based on this, I would not make it a practice to send gifts annually, but send notes or emails. 

You may get some other thoughts on this…

I wish you all the best.