Ethics complaint filed against Rehava
The Charleston Business Journal has reported that an ethics complaint has been filed with the Charleston Trident Association of Realtors against Steve deGuzman, Broker in Charge and owner of Rehava.
First, let me say that I know Steve from when we both worked at Sandlapper Real Estate Group and I personally like him. He started Rehava on the premise of offering a rebate to buyers of 50% of the commission the firm earned. It's sort of similar to the approach taken by Redfin based in Seattle.
While rebates are legal and all real estate commissions are negotiable, apparently the billboards popping up around Charleston urging consumers to "break up with your agent" was the cause of the ethics complaint. The Realtor Code of Ethics prohibits interfering with another agents clients. According to South Carolina real estate license law Section 40-57-145, Paragraph A 22 states disciplinary action may be taken if a licensee "induces a party to break a contract of sale or lease, listing agreement, or buyer agency agreement". (emphasis added)
The Charleston Business Journal reports that deGuzman voluntarily is taking down the billboards and the associated website. Time will tell whether the Rehava business model succeeds but the firm only had 13 transactions in 2008 and is spending more money than it is earning to get business.