Recent changes to the Code of Ethics are based on the philosophy that REALTORS® must be honest and truthful in all real estate communications and advertising. This includes information shared with customers, clients and the pubic whether in person, in print or on the Internet. The Code applies to REALTORS® regardless of what medium is used.
Scope of Article 12
A buyer has filed an ethics complaint claiming an agent made misrepresentations about the property condition. The buyer is using emails sent to him and pages printed from the agent’s website as evidence of the misrepresentation. Does the Code of Ethics apply to the content of an agent’s website or emails and text messages sent to clients and customers?
Yes. Article 12 has been amended to clarify that the true-picture standard of the Code of Ethics applies to all REALTOR® communications. The standards are the same whether you communicate in person, by email, through text messages, over the Internet or by other print medium. The full text of the Code of Ethics including 2008 changes and additional Standards of Practice are available at www.wra.org/codeofethics.
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).
Accordingly, a REALTOR® can be found in violation of the Code for misstatements or gross exaggerations made even in email or text messages. The consequences of a violation of the Code of Ethics include letters of reprimand or warning, fines, requirements to attend education, suspension or termination of membership.
Identify yourself
Does an agent have to use the term REALTOR® in their advertisements, on their website or in emails?
According to the Code of Ethics, REALTORS® must identify their status as real estate professionals in all communications in a readily apparent manner. Although the Code does not require a member to use the term REALTOR®, the recipient of the communication must readily understand that the member is a professional real estate broker or salesperson. The Code of Ethics provisions mirror Wisconsin law, which requires licensees to disclose the broker’s name in advertising — except in cases of rental of real estate owned by the licensee or occasional sales of real estate owned by the licensee — when the licensee must identify the licensee’s status. This obligation extends to email, text messages, Internet or other electronic methods of communication.
Use of REALTOR® trademark
Can a member use “REALTOR®” in a website URL, such as Guaranteedrealtor.com? Can a member’s company create an image or logo which incorporates the word REALTOR® or the “R” logo? Can a team within a company use “REALTOR®” in their group or team name, i.e. REALTOR® Team?
Members are licensed by the National Association of REALTORS® to use, with limitations, the member marks. Style, color, punctuation and the appearance of the marks is restricted. As a general rule it is appropriate to test each use by asking whether it indicates membership in the NAR or is it a synonym for a real estate licensee? If it is used as a synonym for a broker or agent, then the use is incorrect and violates NAR policy.
The NAR Membership Marks Manual (MMM), available online at www.realtor.org/letterlw.nsf/pages/trademarkmanual, restricts the use of REALTOR® marks.
- When using “REALTOR®” in URLs, “The term REALTOR® may not be used with descriptive words or phrases. For example, Number1realtor.com, numberone-realtor.com, chicagorealtors.org or realtorproperties.com are all incorrect.
- The MMM gives examples of prohibited uses of REALTOR® logos at www.realtor.org/letterlw.nsf/pages/mmmPartThree#ThreeIII.
- The use of the marks must be within the context of a member of the association, not an individual team within a real estate company. One may ask if the phrase “member of association” were substituted for REALTOR® in the team name, would it contextually make sense? See examples at www.realtor.org/letterlw.nsf/pages/mmmPartOne#OneIV.
“MLS” in domain names
A REALTOR® has a company website and the URL northwoodsandlakesmls.com. Can a REALTOR® use a URL with “MLS” contained in it?
Unlike the term REALTOR®, MLS is not a membership mark. However, recent changes to the Code of Ethics will apply the true picture in advertising to the use of MLS in domain names by REALTORS®. A REALTOR® must portray a true picture, and that includes in the use of domain names. If the domain name presents less than a true picture the member may be subject to an ethics complaint. The new Standard of Practice, which has not yet been numbered, provides:
REALTORS® shall not:
- use URLs or domain names that present less than a true picture, or
- register URLs or domain names that, if used, would present less than a true picture.
The new Standard of Practice will ensure that REALTORS® present a true picture in their URLs and domain names. The application of this new Standard of Practice is demonstrated in new Case Interpretation #12-20. A violation of the Code of Ethics was found when a broker used “MLS” in his domain name because it led the consumer to believe that he or she was going to a website owned or operated by an MLS, and that he or she would have access to the all the MLS information on the member’s site. The intent of the new Standard of Practice is to protect consumers from being misled by false or manipulative advertising. Case Interpretation #12-20 will be available in the 2008 Code of Ethics and Arbitration Manual.
Company listings on an agent's website
An agent has created her own website that shows all of her company’s listings, not just her own. The agent gives the impression that all of the listings are hers. When buyers have become aware that she is not the listing agent, they have complained. Is this a violation of the Code of Ethics?
An agent’s advertising must meet three standards: the Wisconsin Administrative Code, the Code of Ethics and office policy. Wis. Admin. Code § RL 24.04 provides, in part, that advertising must not be false, deceptive or misleading and must be in the name of the broker. Article 12 of the Code of Ethics provides that all REALTOR® advertising must portray a true picture. Finally, office policy may place additional restrictions on advertising by agents in the office.
An agent enters into a listing on behalf of the broker/owner of the real estate company. Although all of the licensees working for the broker/owner will work on behalf of the seller, it appears to be deceptive or misleading to imply that the licensee herself is the actual listing agent on each of the companies’ listings. The buyer could file a complaint with the Department of Regulation and Licensing for a violation of § RL 24.04(1). An ethics complaint could also be filed alleging the agent did not portray a true picture on her website. Although the agent may display her company’s listings, she needs to clearly identify the listings as company listings and not imply or state they are all her own.
MLS listings
Can an agent display another company’s MLS listings on his or her own website?
When an agent wishes to advertise another broker’s listings, permission of the seller and listing broker are required under § RL 24.04. The IDX rules as adopted by the local MLS are one source of such permission. The display of other companies’ MLS listings is limited by the terms and conditions of local policy. Before an agent displays another company’s MLS listings, the agent should obtain a copy of the local MLS rules to assure compliance with IDX policy. Recent change in MLS policy approved by NAR leadership authorize the MLS to impose financial penalties up to $15,000 on participants or subscribers as discipline for violations of MLS rules so compliance cannot be taken lightly.
Tracy Rucka is a Staff Attorney for the WRA.