Advertising. Advertising gives real estate licensees a time to shine and express their creativity. So much of real estate is law-this and contract-that. Rules and regulations and contracts. Throw in some of those WRA attorneys, and you have the opposite of a party going on. But then licensees have advertising where they can conjure up the hit show Mad Men and channel their inner Don Draper to put their creative spin on their business. 

Think about all the different ways licensees can express themselves in advertising: business cards, websites, television, radio, social media, bus stops, billboards, postcards, fliers, podcasts, sponsorships, newsletters, yard signs, speaking at events, cultivating referral networks, and you probably just thought of five more in the time it took to read through that list. Endless possibilities.

But whatever methods of advertisement a licensee uses, they must follow Wisconsin laws on advertising. Contrary to many statutes, Wisconsin’s laws as they relate to advertising are pretty simple. You see that text below, in the italics font? That is it — that’s the entire advertising statute. Seems simple enough, right? That is true, but there are some areas where agents take some liberties with interpretation or simply do not know the rules and get themselves in trouble. 

Let’s take this section by section and review the do’s and don’ts for advertising by a Wisconsin real estate agent.

Wis. Stat. § 452.136 Advertising by Licensee

(1) False advertising. A licensee may not advertise in a manner that is false, deceptive, or misleading.
(2) Disclosure of name.
      (a) Except for advertisements for the rental of real estate owned by the licensee, a licensee shall in all advertising disclose the firm’s name exactly as printed on the license of the licensed individual broker or licensed broker business entity or disclose a trade name previously filed by the firm with the department and shall in either case clearly indicate that the firm is a business enterprise and not a private party.
      (b) Except for advertisements for the rental of real estate owned by the licensee, a licensee associated with a firm shall advertise under the supervision of and in the name of the firm. The firm’s name as used in advertising shall be clear and conspicuous. This paragraph does not apply to a licensee engaged in independent practice as provided in s. 452.30 (6).
      (c) Notwithstanding pars. (a) and (b), a licensee may advertise the occasional sale of real estate owned by the licensee or may engage in the occasional solicitation of real estate for purchase by the licensee without complying with pars. (a) and (b), provided that the licensee clearly identifies himself, herself, or itself as a real estate licensee in the advertisement.
(3) Advertising without agency agreement prohibited. A firm and any licensees associated with the firm may not advertise a property unless one of the following applies:
      (a) The firm is the listing firm for the property.
      (b) The firm or a licensee associated with the firm has obtained consent to advertise the property from the listing firm for the property.
(4) Advertised price. A licensee may not advertise property at a price other than that agreed upon with the owner, except that the price may be stated as a range or in general terms if it reflects the agreed upon price.

Wis. Stat. § 452.136(1) False advertising

A licensee may not advertise in a manner that is false, deceptive or misleading.

Do:

• Attribute square footage, acreage, lot size and other measurements to a source such as “per tax record” or “per seller.”
• Refer buyers to the zoning authority for questions about zoning, whether a lot is buildable and the permitted uses of a property. 
• Advertise nonconforming “bedrooms” as “seller uses as a bedroom” or some other way without stating it is a legal bedroom. 
• Remove yard signs in a timely manner after the transaction has closed or the listing terminates. 

Don't:

• State measurements such as square footage, lot size and other measurements without attributing them to a source.
• Virtually stage a property unless it is disclosed or it is clear from the photos that it has been virtually staged.
• Advertise a property before the term of the listing contract begins.
• Advertise buyer agency services as “free” unless the agent is truly not charging fees for the buyer agency services. 

Wis. Stat. § 452.136(2) Disclosure of name

(a) Except for advertisements for the rental of real estate owned by the licensee, a licensee shall in all advertising disclose the firm’s name exactly as printed on the license of the licensed individual broker or licensed broker business entity or disclose a trade name previously filed by the firm with the department and shall in either case clearly indicate that the firm is a business enterprise and not a private party.

Do:

• Include the firm’s name in all advertising, including business cards, websites, social media, postcards and all other advertising. 
• Register trade names with the DSPS before using.

Don't:

• Advertise in a “team” name without including the firm’s name.
• Shorten the firm’s name or alter it in any way.

(b) Except for advertisements for the rental of real estate owned by the licensee, a licensee associated with a firm shall advertise under the supervision of and in the name of the firm. The firm’s name as used in advertising shall be clear and conspicuous. This paragraph does not apply to a licensee engaged in independent practice as provided in s. 452.30 (6).

Do:

• Follow any company policies regarding advertisements including branding, color schemes and any other rules. 
• Include the firm’s name in a clear and conspicuous manner.

Don't:

• Spend a bunch of time and money designing advertising without first checking company policy regarding advertisements. 
• Hide or minimize the firm’s name. 

(c) Notwithstanding pars. (a) and (b), a licensee may advertise the occasional sale of real estate owned by the licensee or may engage in the occasional solicitation of real estate for purchase by the licensee without complying with pars. (a) and (b), provided that the licensee clearly identifies himself, herself, or itself as a real estate licensee in the advertisement.

Do:

• Check company policy regarding personal transactions; some firms require their agents to run personal transactions through the firm. 
• Identify yourself in the advertisement as a real estate licensee. 

 Don't:

• Engage in personal transactions without checking company policy.
• Forget to disclose you are licensed in the advertisement.

Wis. Stat. § 452.136(3) Advertising without agency agreement prohibited

A firm and any licensees associated with the firm may not advertise a property unless one of the following applies:
(a) The firm is the listing firm for the property.
(b) The firm or a licensee associated with the firm has obtained consent to advertise the property from the listing firm for the property.

Do: 

• Get a listing before advertising a property. 
• Get permission from the listing firm before advertising another firm’s listing.
• Advertise only during the term of the listing contract. 

Don't:

• Advertise a property without a listing contract. 
• Advertise another firm’s listing without getting consent from the listing firm. 
• Forget that the advertising rules still apply when you are advertising on social media.

Wis. Stat. § 452.136(4) Advertised price

A licensee may not advertise property at a price other than that agreed upon with the owner, except that the price may be stated as a range or in general terms if it reflects the agreed upon price.

Do:

• Advertise the price accurately. 

Don't:

• Misrepresent the price of the property. 

That’s it! That’s the entire advertising statute that regulates how real estate licensees advertise in Wisconsin. But while we are here, let’s take a look at what the REALTOR^® Code of Ethics has to say about advertising. 

Article 12 of the REALTOR^® Code of Ethics is the article that tells us the do’s and don’ts of advertising for REALTORS^®. Article 12 and its accompanying Standards of Practice go into way more details and specifics than Wis. Stat. § 452.136, but they mirror the basics of the Wisconsin Statutes. 

REALTOR^® Code of Ethics Article 12  

REALTORS^® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS^® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)

Article 12 has several Standards of Practice that further elaborate on the advertising rules. Here’s a summary of other topics addressed by the Article 12 Standards of Practice. 

• Standard of Practice 12-1: Don’t claim your services are free unless they really are free.  
• Standard of Practice 12-3: You can offer incentives but make sure the party has a clear, thorough, advance understanding of the terms of the offer. 
• Standard of Practice 12-4: Don’t advertise without authority and advertise the real price.
• Standard of Practice 12-5: Include the firm’s name in a reasonable and readily apparent manner in all advertising.
• Standard of Practice 12-6: When advertising property in which the REALTOR^® has an ownership interest, disclose it.
• Standard of Practice 12-7: Don’t claim you “sold” the property unless you are the listing firm or a cooperating firm. 
• Standard of Practice 12-8: Present a true picture in representations to the public and use reasonable efforts to make sure your website is current.
• Standard of Practice 12-9: The firm’s website must disclose the firm’s name in a reasonable and readily apparent manner.
• Standard of Practice 12-10: The obligation to present a true picture in advertising applies to internet content, images, and URLs and domain names.
• Standard of Practice 12-11: If you intend to share or sell consumer information gathered via the internet, disclose it in a reasonable and readily apparent manner. 
• Standard of Practice 12-12: Don’t use or register URLs or domain names that present less than a true picture. 

The entire REALTOR^® Code of Ethics, including Article 12 and all of its useful Standards of Practice, is available at www.wra.org/CodeOfEthics/SOP12. 

Simple and easy-to-follow rules guide advertising practices for real estate licensees in the state of Wisconsin, and Article 12 further guides REALTOR^® members.