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Moseley
Realtor University
 

Advertising

ALL employees of (insert name of firm) will adhere to the Advertising Regulations as set out in the Virginia Real Estate Board Licensee Regulations. 

***Please note the changes to 18 VAC 135-20-190, as they relate to advertising.  The new regulations now clearly define Internet advertising and electronic communication, as well as any of communications that need disclosures.  The VREB felt that with the emergence of Internet-based, as well as all other electronic, communication mediums licensees needed some guidance on how to treat them.***

These regulations are as follows:

            “18 VAC 135-20-190.            Advertising by licensees.

A.         Definitions.  The following definitions apply unless a different meaning is plainly required by the context:

                        "Advertising" means all forms of representation, promotion and solicitation disseminated in any manner and by any means of communication to consumers for any purpose related to licensed real estate activity.

“Disclosure” in the context of on-line advertising means (i) advertising that contains the firm's licensed name, the city and state in which the firm's main office is located and the jurisdiction in which the firm holds a license or (ii) advertising that contains the licensee name, the name of the firm with which the licensee is active, the city and state in which the licensee's office is located and the jurisdiction in which the licensee holds a license.  “Disclosure” in the context of other advertising means (i) advertising by the firm that contains the firm's licensed name and the firm's address or (ii) advertising by an affiliated licensee that contains the licensee's name, the name of the firm with which the licensee is active and the firm's address.

 

                        "Institutional advertising" means advertising in which no real property is identified.

“Viewable page” means a page that may or may not scroll beyond the borders of the screen and includes the use of framed pages.

B.               All advertising must be under the direct supervision of the principal broker or                 supervising broker and in the name of the firm. The firm's licensed name must be             clearly and legibly displayed on all advertising.

C.            Online advertising.

1.            Any online advertising undertaken for the purpose of any licensed activity is subject to the provisions of this chapter.

2.                  All online advertising that can be viewed or experienced as a separate unit (i.e., e-mail messages and web pages) must contain disclosure as follows:

a.                  The web.  If a firm or licensee owns a webpage or controls its content, the viewable page must include disclosure or a link to disclosure.

b.                  E-mail, newsgroups, discussion lists, bulletin boards.  All such formats shall include disclosure at the beginning or end of each message.  The provisions of this subsection do not apply to correspondence in the ordinary course of business.

c.                   Instant messages.  Disclosure is not necessary in this format if the firm or licensee provided the disclosures via another format prior to providing, or offering to provide, licensed services.

d.                  Chat.  Disclosure is required prior to providing, or offering to provide, licensable services during the chat session, or in text visible on the same webpage that contains the chat session if the licensee controls the website hosting the chat session.

e.                   Voice Over Net (VON).  Disclosure is required prior to advertising or the disclosure text must be visible on the same webpage that contains the VON session. 

f.                    Banner ads.  A link to disclosure is required unless the banner ad contains the disclosure.

            D.            The following activities shall be prohibited:

1.                  Implying that property listed by a licensee's firm and advertised by the firm or licensee is for sale, exchange, rent or lease by the owner or by an unlicensed person;

2.                  Failing to include a notice in all advertising that the owner is a real estate licensee if the licensee owns or has any ownership interest in the property advertised and is not using the services of a licensed real estate entity;

3.                  Failing to include the firm's licensed name on any sign displayed outside each place of business;

4.                  Failing to obtain the written consent of the seller, landlord, optionor or licensor prior to advertising a specific identifiable property; and

5.                  Failing to identify the type of services offered when advertising by general description a property not listed by the party making the advertisement.”

In addition to the above-referenced Virginia Real Estate Board Regulations, ALL employees of (insert name of firm) will adhere to the following REALTOR® Code of Ethics, as they pertain to advertising.

They are as follows:

“·  Article 12
REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS® shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS® is clearly identifiable in any such advertising. (Amended 1/93)

·  Standard of Practice 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. (Amended 1/97)

·  Standard of Practice 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. (Amended 1/97)

·  Standard of Practice 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. However, REALTORS® must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the REALTOR®'s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice. (Amended 1/95)

·  Standard of Practice 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. (Amended 1/93)

·  Standard of Practice 12-5

REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property without disclosing the name of the firm. (Adopted 11/86)

·  Standard of Practice 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. (Amended 1/93)

·  Standard of Practice 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. (Amended 1/96)”

AND

·  Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other REALTORS® have with clients. (Amended 1/98)

·  Standard of Practice 16-1

Article 16 is not intended to prohibit aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other REALTORS® involving commission, fees, compensation or other forms of payment or expenses.
(Adopted 1/93, Amended 1/95)

·  Standard of Practice 16-2

Article 16 does not preclude REALTORS® from making general announcements to prospective clients describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another REALTOR®. A general telephone canvass, general mailing or distribution addressed to all prospective clients in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed "general" for purposes of this standard. (Amended 1/98)

Article 16 is intended to recognize as unethical two basic types of solicitations:

First, telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another REALTOR®; and

Second, mail or other forms of written solicitations of prospective clients whose properties are exclusively listed with another REALTOR® when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, "for sale" or "for rent" signs, or other sources of information required by Article 3 and Multiple Listing Service rules to be made available to other REALTORS® under offers of subagency or cooperation. (Amended 1/93)

·  Standard of Practice 16-3

Article 16 does not preclude REALTORS® from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage). However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other REALTORS® to whom such offers to provide services may be made. (Amended 1/93)”

Furthermore and in addition to the above-referenced policies, ALL employees of (insert name of firm) will adhere to the following policies, as they pertain to advertising.

They are as follows:

(Insert policies that will pertain to your firm and its employees)

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The Virginia Association of REALTORS®
10231 Telegraph Road, Glen Allen, VA 23059-4578
Phone: (800) 755-8271 | Fax: (804) 262-0497
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