When researching what real estate advertising ethics is required, you should first look for the National Association of REALTORs® (NAR) Code of Ethics. Even if you are not a broker,® these are industry ethics and standards of practice in dealing with all parties in real estate transactions. Follow these rules to avoid trouble. Section 12 of the NAR Code of Ethics requires honesty and truthfulness in all real estate marketing and advertising. NAR`s Advertise Ethically emphasizes a “true picture,” with all ads being “accurate and honest.” Standard of Practice 12-5 goes even further by requiring real estate agents to disclose the name of the business when promoting real estate services or properties listed in any medium ®. According to NAR`s 5 Daily Ethical Dilemmas, an advertising slogan like “The No. 1 Real Estate Agent for You” could violate Article 12 – unless the broker is actually the number one broker® and can prove it. 8. Authorized companies may not display and distribute information about properties listed by other authorized companies, electronically or otherwise, without the permission of the listing broker. Such approval may be explicit or, if both licensed companies are involved in a cooperative service, may be specified in the rules of that service. Licensed companies may not change the online posting or registration information without the written permission of the listing broker. Let`s say your full official name is Midlemas Phestus Furplesnurkle, IV, but you prefer “Purple” in conjunction with your real estate business.
Your ads in the local housing magazine, newspaper, and internet simply say, “For all your real estate needs, think `purple!` Similarly, your business cards (purple) and sign drivers will only identify you as “purple”. The ethics of real estate advertising require authorization, honesty and 100% transparency. The CCIM summarizes all this and urges officers to do the right thing, “even if there is no clear legal code.” They recommend strictly following the NAR`s code of ethics, which imposes obligations beyond what federal and state laws require. This way, you can avoid costly lawsuits while advertising winnings. Real Estate Advertising or Marketing – A website that contains information about properties listed with a real estate agent, the identity of that real estate agent or licensee for each property, and information about those properties. 5. A licensed business that uses electronic communications over the Internet, such as e-mail, e-mail discussion groups and message boards for promotional or marketing purposes, must provide the following information on the first or last page of all communications: The ethics of real estate advertising is a major concern in other countries with unregulated real estate industries. This is not the case in the United States. But even in the well-regulated U.S. industry, the ethical rules of real estate advertising can be confusing. This article discusses several resources and tips that will help clarify ethical guidelines.
If you use a name in your real estate business that is different from the name on your real estate license certificate (which should be your official name), you may be violating the Real Estate Licensing Act. The NAR Internet Advertising Policy requires a broker® authorized to advertise or market real estate and/or real estate brokerage services on websites to provide the following information: 2. A licensed firm that promotes or markets real estate brokerage services on a website must include the following data on its home page or on a clearly identified link on that page: If you have any questions about the name you use in real estate, contact the Real Estate Commission`s Legal Department (919/875-3700 ext. 131). Advertising or marketing of real estate brokerage services – A website that contains an offer or solicitation to provide services related to the marketing or identification of real estate for sale or rent. 7. An Authorized Entity that advertises or markets real estate on a website on the Internet that is owned or controlled by the Authorized Entity shall periodically, but at least every thirty-one (31) days, review the advertising and marketing information on the Website regarding the real estate listed by the Authorized Entity to ensure that it is current and not misleading. If information about properties listed by other licensed entities is posted or distributed on an authorized entity`s website, the website must indicate when the information was downloaded or that the information posted or distributed is information currently available from another identified source. On the other hand, the use of a surname that is not yours is not allowed. If you have a heavy or long last name, you may wish you could shorten or simplify it only in the context of your real estate business. While the goal is understandable, the result is misleading if you haven`t legally changed your name. For example, if your last name is Furplesnurkle, you cannot simply call yourself “Mr.
Furp” or “Mr. Furp”. Jones” in your brokerage business, as long as your official name remains Furplesnurkle. If you want to become “Furp” or “Jones”, you must legally change your name. The easiest way to do this is to go through a name change court proceeding before the clerk of the county court where you live. NAR considers the advertising of a property that appears in an MLS by a non-listing agent to be unethical. In NARs, you do not advertise without “permission”, Standard of Practice 12-4 requires that the “authority” promote an offer from the listing agent who has a written registration contract with the seller. There is an exception to the Internet Data Exchange (IDX) rules of an MLS operated by Realtor®, which allows listing brokers to give all MLS members general authority to advertise their offerings on their websites. However, IDX rules do not apply to other advertising media such as newspapers. The ethical rules of real estate advertising can be confusing.
Aside from what you can`t promote, follow these basic rules: Other nicknames are not logically linked to the user`s first name. For example, if your name is Midlemas Phestus Furplesnurkle and you use a nickname like “Purple” or “Kid,” a member of the audience would have no way of knowing that you are actually “Midlemas.” To ensure that you can be easily identified, your business cards and correspondence should include your full name as well as your nickname. This can be done in several ways. For example, your business card might be “Midlema`s `Purplesnurkle` Furplesnurkle, broker,” and your newspaper ad might say, “For all your real estate needs, call Purple! (M.P. Furplesnurkle, IV, broker). » 1. A licensed company that has authorized the advertising or marketing of real estate on a website on the Internet must provide the following data on the page where the company`s advertising or marketing appears: In addition to the NAR Code of Ethics, each state has its own consumer protection laws to protect consumers and real estate laws that cover the conduct of brokers and agents. While these laws vary among the 50 states, they all agree that false, misleading, and dishonest advertising is illegal. The attorney who drafted the consumer protection laws and your company claim that state and federal laws make misleading or deceptive advertising illegal, even if it doesn`t fool anyone.
In addition, there is a federal consumer protection law enforced by the Federal Trade Commission (FTC). The FTC investigates fraudulent, unfair, and fraudulent business practices and prosecutes individuals and businesses that break the law. Learn more about real estate advertising and marketing and supplement your continuing education needs with our continuing education course, The Definitive Advertising Guide. If you are a broker® and you post false, misleading or fraudulent advertisements, you may be subject to disciplinary action by NAR or your local brokerage board, which will result in fines or expulsion from the board®. Also, whether you are a broker® or not, aggrieved parties can sue you and your brokerage firm in state and federal courts, which will cost you a lot of money. In addition, the FTC and your consumer protection agency may investigate your ads and sue you and your brokerage firm if they violate their laws. If you don`t want to have to legally change your name, consider using your legal name in all aspects of your business. You cannot avoid the problem by submitting an accepted name record to the Registry Office. This procedure applies only to company names, not personal name changes. This method of identification is inadequate by law, even if your advertisements, cards and stationery contain the name, address and telephone number of your business. The name under which you do business should be sufficient to legally identify you and ensure that you are not misleading the public about your identity.
By using only the word “purple,” you are doing business under a name that is not legally yours, thus hiding your identity. While you don`t intend to deceive, do so by not using your legal name.