We’ve covered the topic of C.L.U.E. reports several times here at RE-Insider and last year we provided a good overview of the report in our story Who Needs a C.L.U.E.?
Currently, as a real estate agent, if you recommend your clients order a C.L.U.E. report when they order their NHD report you have several choices of companies to turn to for this service.
Recently, it has come to our attention that LexisNexis has decided to terminate its distribution agreements with these companies, compelling the consumer to go directly to LexisNexis for their reports. Beginning December 1, 2015 NHD companies will no longer be able to provide the C.L.U.E. Report to customers.
You might ask yourself what does this mean for my buyers and sellers? Will they pay more for the report if LexisNexis is the only game in town? Will ordering a C.L.U.E. report from LexisNexis delay escrow if they are taking all the orders in the future?
We covered the question regarding escrow delays and C.L.U.E. reports can delay the close of escrow: The process of requesting corrections for errors/mistakes in a CLUE report can take time and delay the close of escrow.
Remember C.L.U.E. is not required by law so don’t push your clients to order one.
When a client requests a C.L.U.E. report, inform them that they can get the C.L.U.E. report from their insurance company. It’s FREE if they are the property owner. If you reach out for home insurance during the escrow process the insurance company will run a C.L.U.E. report. Ask them for a copy.
Your clients can go directly to this site and order their free reports: https://personalreports.lexisnexis.com/
Your client (or any homeowner) has the right to receive a free annual report under the FACT Act. For more on your right to CLUE and other specialty reports, see PRC Fact Sheet 6b, The Other Consumer Reports: What You Should Know about Specialty Reports.
For information on how potential insurance companies size you up see the PRC Fact Sheet 2a: CLUE and You: How Insurers Size You Up
Please let us know – is this news to you? How have you or agents in your office handled the request for a C.L.U.E. report? We’d love to hear from you.