Forewarn Shows Troubling Information, what to do?

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Please remember you have access to a great safety tool, Forewarn app, that allows you to check the background of a prospect based on a phone number or name. In Berkshire County, at least 2 Realtors called the Board office to report they found very scary information about someone they were scheduled to meet for a showing and were able to take safety precautions. In one case, when it was clear the agent would not be attending alone, the appointment was cancelled.  Verifying your prospects in FOREWARN® is not only critical for your personal safety and efficiency, but also a benefit to your listing homeowners, providing an added layer of protection for their homes and families. The app verifies:
  • Identity (first name, last name, alias, and age)
  • Phone numbers (residential and mobile history)
  • Address history (rental, ownership, and associated addresses)
  • Financial risk (bankruptcy, lien, judgement, and foreclosure history)
  • Property records (nationwide property ownership history)
  • Criminal records (nationwide criminal history search)
Here is a quick question about the financial side of forewarn from our legal staff, and following that is some tips on what to do if you do a search and get troubling data back on a prospective client.
Q: I ran a prospective tenant through FOREWARN and the report shows that she has a criminal conviction on her record. Can I share this information with my landlord-client? 
A: No. The FOREWARN Subscriber Agreement that you executed requires you to keep all search results confidential. FOREWARN is simply intended to be a safety tool in your professional toolbox. If you see information regarding a potential client that concerns you, FOREWARN gives you an opportunity to increase your safety protocols before engaging with the client.

Additionally, FOREWARN should not be used for tenant financial screening purposes or to determine if a buyer will be eligible for a mortgage. FOREWARN is not a “consumer reporting agency” and the company notes that some financial data contained in the app may be outdated. You should never tell a potential tenant or buyer that they are unqualified to enter into a real estate transaction because of information that you found in FOREWARN.
For more information, please see: https://www.forewarn.com/faqs/

Q. What should you do when a prospect shows a criminal record on FOREWARN?

A. Your primary focus must shift to personal safety and liability management. Do not confront the prospect about the record, deny service based solely on this app data, or disclose the findings to third parties.

Prioritize Personal Safety: Use the data to plan accordingly. Never meet the prospect alone in a vacant home or isolated area.

Implement Standard Office Policy: Require all new, unvetted prospects to meet at your brokerage office, present a photo ID, and complete a formal buyer/tenant consultation before you schedule any showings. This naturally deters bad actors.

Verify the Match: App records can sometimes belong to someone else with a similar name. Be aware of “weaker matches” and stick to validated safety protocols rather than assumptions.

Consult Your Broker: Disclose the situation to your managing broker. They will advise you on whether to proceed with the client, assign a colleague to partner with you, or transition the prospect to another agent.

Abide by Fair Housing Laws: While you are using the data for safety, the seller cannot discriminate based on a criminal background unless it falls under strict exemptions. If a seller wishes to reject an offer based on a criminal record, they should consult a real estate attorney first.

Never Violate FOREWARN Guidelines: Do not tell a prospect they have been disqualified from services based on FOREWARN data, and never use the app for cold-prospecting.

Today you can start to take your safety seriously – Consider discussing office safety policies or review guidelines for handling disclosures during showings with a colleague, your broker or at an office meeting.  Planning ahead is the best way to stay safe and ensure you are providing the same professional treatment for all.