Why Homeowner Love Letters Are Not Worth the Legal Risk

So-called “buyer love letters” are getting the cold shoulder.

The notes that were once shared between potential buyers and home sellers have increasingly fallen by the wayside, the San Francisco Standard reported. Instead, buyers are finding other ways to connect with sellers to test compliance with fair housing laws, though correspondence could still be an option in some cases.

“In lieu of the letter, we’re able to, in an above-board way, communicate a little bit about the buyer,” Alexander Lurie of City Real Estate said. “We just need to be thoughtful about how we communicate those things.”

Five years ago, the California Association of Realtors first advised sellers’ agents not to take buyers’ love letters because of potential unconscious bias toward legally protected groups. What could be a simple letter describing a family or romantic situation may instead open a door to discrimination.

“As lawyers, it’s our job to be paranoid and worry about these things,” Gov Hutchinson, CAR’s assistant general counsel, said.

Now, CAR advises agents to not accept offers that come with a love letter; in fact, they are told to get ahead of it before any come in by announcing that none will be accepted. Sellers and their agents are largely following the guidance.

“So much of what happens with offers is about communication and relationships, and the last thing I want to do is alienate the listing agent by giving them a letter they don’t want,” Jodi Nishimura of Kai Real Estate said.

That’s not to say the love letter has completely fizzled. In fact, in some situations, sharing some personal information with listing agents has proven to help buyers seal the deal. “Those things happen, not as often, but they do happen,” Christie’s International Real Estate Sereno agent Colin Halliday said.

Still, buyers are advised to stay away from sharing personal anecdotes with sellers to avoid jeopardizing potential sales, even if unconscious bias on the part of the seller would violate fair housing laws.

“Sellers like to envision who’s buying this house that they like so much and put so much effort into,” Hutchinson said. “But also, sellers, consciously or subconsciously, probably tend to favor people who are like them. That’s the risk.”— Chris Malone Méndez