Real estate “love letters” are letters written by prospective home buyers which aim to persuade sellers to choose their offer over other, competing, offers. Oregon banned that practice with House Bill 2550, which was signed by Governor Brown in June. The law requires real estate agents representing home sellers to reject communications from buyers, unless the communications is within the scope of an offer to purchase, or other certain inquiries that pertain to the property.
Pacific Legal Foundation, an Oregon law firm, filed for an injunction to stop the law’s implementation. The legal argument being made is that the law infringes on the First Amendment’s free speech clause. In addition to that, attorneys argue that there are practical concerns with the law, which can negatively affect both buyers and sellers. For example, home sellers may wish to know whether or not the buyer is a large investment firm, and buyers may want to gain an edge by letting the sellers know that they intend to live in the home for a long time, or make valuable improvements to the condition of the home.
