I suppose that technically, Article 12 is all about advertising. But, what is really advertising? Billboards, tv ads, radio ads, newspaper ads, signs, fliers, bulk mail, etc. What about facebook, twitter and other social media? Be prepared that some of this information is likely to upset you. However, I’m hoping it saves you.
The act or practice of calling public attention to one’s product, service, need, etc. is the definition of advertising. That’s pretty broad. Chances are your state real estate commission has a broader definition. They usually begin with “anything that is intended to entice….”. Further more, the Code of Ethics does not say “except for social media, personal correspondence, etc.” Your license act probably doesn’t exclude social media either.
If I post a congratulations on their new home to the Smiths on my personal facebook page, is that an advertisement? I think so. I’m doing it to wish them well but I’m also hoping they’ll remember me for all of their real estate needs. It’s also expected that other friends will be reminded of what I do and how awesome I am. My real estate commission would probably consider this advertising. I know the hearing panel will if I ever have a complaint filed against me on Article 12. So, here’s your litmus test: If I put it on a post card and mailed it to a neighborhood, would it be an advertisement? If the answer is yes, don’t post it without disclosing your broker’s name and your status as an agent, broker, REALTOR, etc. If they have to click to get to that information, you may have a challenge later.
The Code also requires that we are honest in our advertising. Be very careful here. I think the back yard is so big and level that I could put a pool and a garden there. Better not advertise that fact unless you have it in writing that there are no easements, ordinances, codes, etc. that would prohibit it.
What about ‘free’ services that come with ownership of that condo? Unless your ad contains those HOA details and costs, it better not say ‘free’.
In some markets, REALTORS may receive gift cards or even cash from a vendor for a referral. Check your state license act for the rules in your state. The Code says you can but you must disclose it at the time you make the referral. So, if they send the check after the fact and you had not told your client you would be paid you must not accept the check.
You can offer rebates, trips, gifts, etc. to entice people to list with you or even to buy/sell your listing. However, ALL the details of the offer must be in any advertisement. BTW – MLS is an advertisement.
Let’s discuss those websites. Yours, I mean. Do you keep up with them? Do you remove or change the status of the properties when they have a contract? If you don’t, you could be in violation of the code. Your site must have your brokerage name and the state in which you are located.
Sometimes we see a broker use a domain name that is misleading. Those brokers get in trouble. An example might be BestHomes.com. On the surface this doesn’t seem like a huge deal, right? What if one of your competitors business’ is named Best Home REALTORS? Texas Real Estate Company could be the name of my company. TREC.com would be a great domain name. Right? Of course not, consumers and licensees might be confused that I wasn’t the Texas Real Estate Commission.
My last point, we’re almost through….We’ve all heard that if we use a designation (ie: ABR, GRI, CRS, etc.) that we aren’t entitled to, the society or council will make us stop. Did you realize it’s also in the Code? SOP 12-13. Moral of that: Make sure you pay your dues and renew in a timely manner. If not, you could unintentionally violate the Code.
REALTORS, Article 12 is a good one to read and consider. I haven’t addressed everything there is. Hopefully, I’ve given you enough to help you start thinking about it though.
leighyork 