The Legal Risks of Buying and Selling Leads

Posted on: February 26, 2015 by Newmark Insurance

Buying and selling leads in the real estate industry is a given, right? It provides a great opportunity for real estate agents and brokers to gain a competitive edge, giving them a proactive, targeted strategy. Buying leads can be expensive though; and what’s more, it can cause real estate agents to run into some legal issues. In order to benefit your business, but also avoid any legal troubles or Real Estate Liability risks, the following tips are just a few ways you can make sure you are buying or selling leads in the right way.


  • If leads did not consent to receive commercial emails from the lead seller, then no commercial emails should be sent their way.
  • Lead buyers must be aware of opt-in and opt-out permissions, and ensure that the lead has not already opted-out of emails from their agency.
  • It is required that leads provide “express written consent” to receive autodialed text messages or phone calls.
  • Leads on the Do Not Call (DNC) list may not be contacted.


  • Just as with buying leads, if an individual has opted out of receiving emails from you, then their email address should not be sold by you either.
  • Be aware of promoting lenders that you sell leads to.
  • Most importantly, ensure that you are in compliance with fair lending laws, the SAFE Act and the Gramm Leach Billey Act.

At NewMark, we understand the unique risks faced by those who work in the real estate industry, as well as the Professional Liability risks faced in other industries. Please contact us today at (855) 777-6549 to learn more about our products and services.

Posted in: blog Real Estate