Cold Calling Is Getting Real Estate Brokerages Into Legal Trouble

One of the main ways that brokers find new clients is by reaching out to homeowners about selling their houses. This practice has been supercharged by technology that can help plan and execute huge outreach campaigns. While these large scale marketing efforts can be successful, they can also expose brokerages to litigation for violating the Telephone Consumer Protection Act.

Earlier this week, a complaint was filed against Kellar Williams in New York over its telemarketing campaign. Now, a second lawsuit has been filed in Oregon, this time against Compass. Both suits accuse the brokerages of repeatedly contacting someone who “has no existing business relationship” with the companies. There is also a class action lawsuit being brought against Compass for all of the people it contacted who are listed on the national Do Not Call Registry...

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RSK: This is worrisome. I know many commercial brokers who cold call property owners. I find it hard to believe they can be sued unless the property owner tells them not to contact them ever again.