11.1 Advertising Policy #
The following policies apply to all property listed with the Company.
- Advertising Defined: It is the policy of the Company that the term “advertising” is to be broadly interpreted to include any communication, whether oral or written, through any physical or electronic platform, between an agent and the public.
- Necessity of Signed Listing Agreement: No property will be advertised in any way without a signed written listing agreement on file with the Broker or Manager. The listing agreement in the hands of the associate agent is not sufficient. If a listing agent has a listing he/she wants to advertise, the original or a fax of the original must be in the hands of the Broker or Manager.
- Newspaper/Magazine Ads: A listing which is due to expire by the publication date of a newspaper or magazine ad will not be inserted into the ad unless a written extension of the listing is received by the Broker or Manager before the deadline for placing the ad.
- Price Changes: No price changes or other substantive changes to the listing will be advertised unless a written change of the price or other appropriate information is received by the Broker or Manager before the deadline for placing the ad.
- Advertising Features As “New”: Information on features of the property will not be advertised as “new” unless substantiated by written receipts or other evidence of payment from the owner showing the date the work was done. If the verification is received, it will be advertised with the appropriate date. If the verification is not received, the listing agent must use other words such as “newer” or “recent” to describe the feature.
Agents should take special care to follow these same rules in the use of “special feature” sheets. If an agent does not follow this policy regarding any information sheets or other documentation/advertising the agent prepares, the agent will be solely liable for any errors or omissions which later cause any losses.
- “For Sale” Signs: “For Sale” signs and lock boxes will be removed immediately, per state or local MLS guidelines, upon expiration or withdrawal of a listing.
- “Sold” Signs: According to the REALTOR® Code of Ethics, prior to closing, only the sold sign of the listing broker is allowed on the listing, unless the listing agent consents otherwise. The Code of Ethics also allows the cooperating broker to post a “sold” sign with the written permission of the buyer after the closing. Per the Code of Ethics, either the listing broker or the cooperating broker may claim to have sold the property in advertising and representations to the public.
- “Personal Advertising”: Personal advertising by individual agents is encouraged. Any personal advertising must be approved by the Broker or Manager. Standard of Practice 12-5 of the Code of Ethics requires that the name of the firm be disclosed in any advertisement of listed property.
If you use a name in your real estate business which is different from the name on your real estate license certificate (which should be your legal name), you may be in violation of the Real Estate License Law.
For example, suppose your full legal name is Midlemas Phestus Furplesnurkle, IV, but you prefer to go by “Purple” in connection with your real estate business. Your advertisements in the local homes magazine, newspaper, and on the web, simply say, “For all your real estate needs, think “Purple!” Likewise, your (Purple) business cards and sign riders identify you only as “Purple.” This method of identification is insufficient under the law even if your ads, cards, and stationery include your company name, address and phone number. The name under which you do business should be enough to identify you legally and to assure that you are not misleading the public as to your identity. By using only “Purple,” you are engaging in business under a name not legally your own and thus effectively concealing your identity. While you may not intend to deceive, you do so by not using your legal name.
First Names
Nicknames have always been common, and you can certainly use one in place of your legal first name. The key is to remain readily identifiable to the public and to the Real Estate Commission. Some nicknames are short versions of a longer name and are commonly known. For example, William may go by “Will” or “Bill,” Robert by “Rob” or “Bob,” and Elizabeth by “Liz,” “Beth,” or even “Betsy.” In these kinds of situations, you may use a nickname because your actual name can be easily determined. Similarly, a nickname involving the use of initials in place of your given name is acceptable, as when Thomas Joseph Jefferson goes by “T. Joseph Jefferson” or even “T.J. Jefferson.”
Other nicknames are not logically associated with 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 public would have no way of knowing that you are actually “Midlemas.” In order to assure that you can be easily identified, your business cards and correspondence should include your full name together with your nickname. This can be done in various ways. For example, your business card might read, “Midlemas ‘Purple’ Furplesnurkle, Broker,” and your newspaper ad could say, “For all your real estate needs, call Purple! (M.P. Furplesnurkle, IV, Broker).”
Last Names
Using a surname that is not your own is not allowed. If you have an awkward or lengthy surname, you may wish that you could shorten or simplify it only in connection with your real estate business. While the goal is understandable, the result is misleading if you haven’t legally changed your name. For instance, if your surname is Furplesnurkle, you can’t simply call yourself “Mr. Furp” or “Mr. Jones” in your brokerage activities, so long as your legal name remains Furplesnurkle. If you want to become “Furp” or “Jones,” you should legally change your name. The most straightforward way to do this is to go through a judicial name change proceeding before the clerk of court in the county where you reside.
If you don’t want to go to the trouble of changing your name legally, then you should use your legal name in all aspects of your business. You cannot avoid the problem by filing a DBA (doing business as) registration in the office of the register of DBAs. That procedure is only for business names–not for personal name changes. You must also file your DBA with the State.
Internet Advertising
- All agent-created or agent-utilized online advertisements, Web pages, domain names, sponsorships, links, frames, blogs, and other electronic media (referred to as “Internet advertising”) must conform to state and federal law and to Company identity standards.
- All Internet advertising should be approved by Company management before going online. It is the agent’s responsibility to send in all material to their local Broker or Manager for review before publishing. This policy covers personal websites, blogs, and listings posted on any site other than the Company’s website.
- Any contract for Internet advertising must be reviewed and approved by Company management before the agent signs it.
- All Internet advertising must contain appropriate content and shall not contain links to any inappropriate content nor be sponsored by any person or entity that has not been specifically approved by Company management. Examples of inappropriate content include racial or ethnic “hate” content, content that is excessively violent, and sexually explicit content.
- The agent will be responsible for all costs of the Internet advertising that he or she has contracted for. The agent may not enter into any contracts for Internet advertising in the Company’s name; instead, the agent must enter into such contracts in his or her own name. If the Company becomes liable for an agent’s Internet advertising contract, the agent will promptly reimburse the Company the costs of the advertising and/or the Company will have the right to deduct such costs from any pending commissions due the agent.
General Advertising Policies
As used here, advertising includes, but is not limited to, the following:
- All display advertising.
- All classified advertising with any publication including newspapers and magazines.
- All mass mailing and faxes.
- Emails
- Internet postings
- Television programs or ads
- Flyers
- Postcards
- All newsletters
- “For Sale” signs and riders
- Billboards
- Business cards
All advertising must be approved by the Company before your placement or use.
You may only advertise property actually listed for sale or for rent by the Company. Anytime you advertise property you must include the term “broker,” “agent,” “licensee” or “REALTOR®.”
All advertising words and content are and shall remain the property of the Company whether created by you, the Company, or both.
11.2 Legal and Ethical Considerations #
Advertising is one of the most important tools for success in real estate. However, it must be used carefully. As an associate and licensee, you have both a legal and ethical obligation to be truthful when advertising properties or services.
All advertising must comply with all state and federal advertising requirements as well as the NAR Code of Ethics. Any advertisement that the Company deems to be false or misleading may immediately be withdrawn by the Company and without notice to you. Legally, you may be held liable for fraud, intentional misrepresentation, or negligent misrepresentation if you make material false statements or material omissions in an advertisement. Additionally, you may face disciplinary action by the Department of Real Estate.
Finally, licensees who place listings in the Multiple Listing Service in expectation of compensation are responsible for the truth of all representations in such listings of which the licensee had knowledge, or reasonably should have had knowledge.
11.3 Advertising Expenses #
The Company publishes its schedule of advertising media expenses in the AARE FAQ doc. The document itemizes those advertising expenses that will be borne by the Company, those that will be split between the Company and you, and those that will be solely your responsibility. This schedule may be changed by the Company from time to time.
11.4 Company Name and Logos #
Your use of the Company’s name and logo must conform to the Company’s graphic standards regarding the style, color, and uses of the name and logo. These standards are available through your Manager. No other uses of the Company name or logo are permitted without prior consent of your Manager.
11.5 REALTOR® Trademark #
The use of the name REALTOR® must be used in compliance with the National Association of REALTORS®® guidelines governing the use of that name and mark. Those guidelines are available on-line at: www.realtor.org.
Telephone: Do Not Call Compliance
You are required to comply with the do-not-call laws which generally prohibit “telephone solicitations” to residential and cell phone numbers registered on the National Do-Not-Call Registry. A “telephone solicitation” is defined as the initiation of any telephone call or message, unless exempt, “for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person.”
The Company may maintain a “do-not-call” list from, among other things, the federal Do Not Call Registry. You may not call or text anyone using their home or cell phone number if listed on that Registry unless an exemption applies. Exemptions include written permission, an established business relationship, or a personal relationship.
Written Permission means the person being called has given prior express permission to call as evidenced by a signed, written agreement to be contacted at a specific number (e.g., C.A.R. “Consent for Communications” form).
An Established Business Relationship means a prior or existing relationship formed by a voluntary two-way communication between a person or entity and a residential subscriber on the basis of either:
- The consumer’s business transaction with the Company in the past 18 months; or
- The consumer’s inquiry or application regarding the Company’s services within the past three months.
Personal Relationship means any family member, friend, or acquaintance of the person making the call.
In addition, you must inform the Company if you speak on the telephone with any party who expresses a desire not to be called again. The person must be placed on the “Do Not Call” list. You must also refrain from soliciting anyone on the Company’s “Do Not Call” list, unless an exemption applies. Contact your Broker or Manager for the list.
It is your responsibility to adhere to this policy and you will be solely responsible for any violation, including any fines, penalties, damages recovered, settlements or attorney’s fees and costs.
11.6 Fax and Email Advertising #
There are state and federal laws prohibiting faxing or emailing unsolicited commercial advertisements or solicitations. Exemptions include prior permission or an established business relationship. It is the Company’s policy to adhere to these legal guidelines. Contact your Manager if you have any questions.
It is your responsibility to adhere to this policy and will be solely responsible for any violation, including any fines, penalties, damages recovered, settlements, or attorney’s fees and costs.
11.7 Websites: Privacy #
The Company maintains a website which advertises Company listings. It is the Company’s policy to respect the privacy of persons visiting our website. See the Company Website Privacy Policy statement on-line for more details.
If you maintain your own personal website, you must conform to the Privacy Policy statement on the Company website in all your interactions with visitors to your website. Your personal website must also conform to other online privacy and other laws, to this Policy Manual, to MLS rules, and to the NAR Code of Ethics.
11.8 Regulation Z #
You are required to adhere to the requirements of Federal Truth-in-Lending laws (also known as “Regulation Z”) for advertising certain credit transactions or financial terms. Under Regulation Z, if an advertisement states a specific finance charge, the charge must be expressed as an annual percentage rate (APR).
If any of the following terms are used in the advertisement:
- The amount or percentage of the down payment.
- The amount of any installment payment.
- The dollar amount of any finance charge.
- The number of installments.
- The period of repayment.
Then the advertisement MUST include all of the following specific terms:
- Down payment.
- Terms of repayment.
- Rate of finance charge expressed as an annual percentage rate.
- If the annual percentage rate may be increased after the transaction is consummated, then that fact must also be disclosed.
Any advertisement of commission rates, discount points, reductions, or incentives must be approved by the Broker prior to your placement or use.
Regulation Z requires that all of the terms of the financing be stated if any “triggering terms” are used. “Triggering terms” are terms such as the amount of down payment (“10% down”), the amount of any payment (“Only $550 per month”), the period of repayment (“40 year loan available”) or the number of payments (“Only 48 monthly payments”).
Use of any interest rate in advertising is not allowed. Only the Annual Percentage Rate, stated and calculated as such is allowed. Therefore, a property cannot be advertised as having, for example, a “7% assumable VA loan.”
Not all terms trigger Regulation Z disclosure. Some examples of terms which can be used without triggering Regulation Z disclosure are “No down payment”, “Financing Available”, “Special Financing”, or “Assumable Loan.”
11.9 Fair Housing in Advertising #
The Company is committed to equal opportunity and fair housing in all of its advertising.
Federal law states that a broker may not print, publish, or make any discriminatory notice, statement, or advertisement which indicates a preference, limitation, or discrimination in the sale or rental of a dwelling. The prohibition against discriminatory advertisements applies to all oral and written statements, including flyers, brochures, signs, banners, posters and billboards used in the sale of a dwelling.
Be aware that the selective use of words, phrases, symbols, visual aids and media in the advertising of real estate may indicate preferences held by the advertiser and lead to allegations of discriminatory housing practices. Words in a real estate advertisement which indicate a particular race, color, sex, handicap, familial status, national origin, gender identity, gender expression, sexual orientation, marital status, ancestry, source of income, or genetic information may violate the Federal Fair Housing Act and/or the State Fair Employment or Housing Act(s) and may not be used in Company advertisements at any time.