We’re breaking down the basic rules and laws governing real estate advertising that all agents must know and follow.

Article 12 Standards of Practice (#8-13)

Article 12 of the REALTORS® Code of Ethics calls on all REALTORS® to be honest and truthful in their real estate advertising, marketing, and other representations. Here is Part Two of our post on the 13 Standards of Practice listed in Article 12.

12-8: The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTORS®’ websites. REALTORS® shall use reasonable efforts to ensure that information on their websites is current.

Providing false information on your website is not only in violation of the REALTORS® Code of Ethics, but it also makes you seem disingenuous, and sets potential clients up for disappointment when you are unable to follow through with what is presented on your site.

12-9: REALTOR® firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner. Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner.

You can place this information on your About page or in the footer of your website.

12-10: REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes Internet content posted, and the URLs and domain names they use, and prohibits REALTORS® from: 1) engaging in deceptive or unauthorized framing of real estate brokerage websites; 2) manipulating listing and other content in any way that produces a deceptive or misleading result; 3) deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic; 4) presenting content developed by others without either attribution or without permission, or 5) to otherwise mislead consumers.

Honesty in your advertising and representations will earn you respect from your clients, potential clients and fellow real estate agents.

12-11: REALTORS® intending to share or sell consumer information gathered via the Internet shall disclose that possibility in a reasonable and readily apparent manner.

You can include a disclaimer at the end of all forms that require consumers to fill in information you intend to share or sell.

12-12: REALTORS® shall not: 1) use URLs or domain names that present less than a true picture, or 2) register URLs or domain names which, if used, would present less than a true picture.

To avoid this, many agents use their first and last name as their website URL.

12-13:  The obligation to present a true picture in advertising, marketing, and representations allows REALTORS® to use and display only professional designations, certifications, and other credentials to which they are legitimately entitled.

You can display designations, certifications and other credentials that you’ve rightfully earned on your website, business card, social pages and profiles, etc.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.

Regardless of whether your advertisement is written, verbal or electronic, real estate brokers must follow these basic rules and laws governing real estate advertising.

Article 12 Standards of Practice (#1-7)

Article 12 of the REALTORS® Code of Ethics calls on all REALTORS® to be honest and truthful in their real estate advertising, marketing, and other representations. Below are the first seven of the 13 Standards of Practice listed in Article 12.

12-1: REALTORS® may use the term “free” and similar terms in their advertising and in other representations provided that all terms governing availability of the offered product or service are clearly disclosed at the same time.

The easiest way to do this is by disclosing all terms in fine print at the bottom of your advertisement.

12-2: REALTORS® may represent their services as “free” or without cost even if they expect to receive compensation from a source other than their client provided that the potential for the REALTOR® to obtain a benefit from a third party is clearly disclosed at the same time.

Again, this information can easily be disclosed in fine print at the bottom of your advertisement.

12-3: The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the REALTOR® making the offer.

But your listing presentation and experience should be what wins over clients, not inducements.

12-4: REALTORS® shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, REALTORS® shall not quote a price different from that agreed upon with the seller/landlord.

Never change a listing price without consulting your clients. Once you and your clients decide on a list price, stick with it. If the home isn’t selling, consult with your clients to determine whether a price change is necessary.

12-5: REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium without disclosing the name of that REALTOR®’s firm in a reasonable and readily apparent manner.

While it is legally required, it’s also best practice to disclose both your name and your brokerage’s name on every piece of marketing material you distribute. In doing so, potential clients can more easily find your information online and hire you as their agent.

12-6: REALTORS®, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as REALTORS® or real estate licensees.

Not doing so deceives potential buyers or renters. Transparency is a necessary route to take when selling or leasing a property you have ownership interest in.

12-7: Only REALTORS® who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have “sold” the property.  Prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker.

When you’re working with buyer clients to close a deal, it’s important to establish a professional relationship with the selling broker and respect the selling broker’s rights.

You can find the full Article 12 of the REALTORS® Code of Ethics here.

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AgentEDU® is a platform where agents at every level can come to watch 10-minute video courses for the many situations that successful agents must master. From essential to advanced level and everything in between, AgentEDU® courses help agents become top producers with increased earnings and a plan for continued growth.

AgentEDU® is an Agent Publishing brand. For nearly two decades, Agent Publishing has been committed to providing residential real estate professionals with the information and training required to build successful and meaningful careers in their local markets. Agent Publishing’s influence extends to every career stage and reaches agents across print, digital, events and online learning.