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Does Your Real Estate Website Comply with Your State License Law?

As I search the Internet everyday looking at real estate sites, it is amazing what you can find or not find! On most of the real estate sites I come across it is impossible to tell if the owner of the site is even a licensed real estate agent. No names of agent / broker, no addresses of the state licensed real estate company anywhere! This isn't even including phone numbers. They take the term BLIND SITE to a new level! An example of this is an agent that operates a FOR SALE BY OWNER SITE, and markets a mix of listings MLS and BY OWNERS, yet never mentions anywhere in site the agents or brokers name or that they are licensed-to do business under a broker licensed in the state. That is highly illegal! Another item that is every easy to come across is high profiled branded sites that are very well placed at the tops of the search engines, and in a million years you cannot tell who the agent is licensed with! Not very smart! It is Real Estate Branding on Steroids! They could have a reality TV show on this one When Branding Goes Wrong! I hope for the agents sake that their personal marketing adviser is familiar with their state real estate license law! Some may view branding as bringing out ones creative side, others view it as a violation of law, and non compliance with state real estate licenses law.

Most state real estate licensure require identification with your licensed broker, the address and city you are licensed, and the office phone number. Brokers are ultimately for reviewing all advertising, but they have totally ignored reviewing their agent sites. It is very easy to find out who owns a website easily, and if they are licensed in your state. Let's use www.Godaddy.comfor the experiment because it is easy to find domain ownership. Start by copying and pasting the domain name here, and then viewing ownership of the site! Search for a domain name, when it says the name is not available, www.XXX.COM is not available (please click here for info) If they have not hidden their ownership, it will show the name of the website owner.

Do You Identify Your Broker, Your Licensure On Your Website? - by Jim Crawford

RE/MAX Greater Atlanta 770-238-0122 Direct

Or 888-992-5546 Toll Free Office

Atlanta Real Estate & Atlanta Homes for Sale

Posted by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO on 02/22/2007 05:34 PM

Comments (51)

real estate license laws internet, real estate internet compliance, real estate state license laws, internet policies real estate, internet, web

Originally posted at: Atlanta Real Estate | Atlanta Housing News for Real Estate: Does Your Real Estate Website Comply with Your State License Law?

51 Comments on Does Your Real Estate Website Comply with Your State License Law?

FEB

2007

You pose a good question Jim.
I'm certainly concerned about posers (no pun intended).
It will be interesting to see if there are comments.
Yesterday I posted a question as to how some of the ActiveRain community is licensed in their jurisdiction. Nary a comment.

I think its important to follow the rules. I am breaking one in that I took the office number off the site and got a private line. I found too many agents stealing my calls as they were doing desk duty. My reaction was to go with a private line. Once the agents stole the calls, they did nothing with them. Maybe the had second thoughts, but why waste my lead. It happeended 5-6 times that I know of. Eric

Great question Jim. I went and checked my site just to be sure and thankfully, I have it covered but I know what you mean. I have viewed several "broker" sites where the office was never represented. Makes you wonder, what are they thinking?

Great comments! There are always ways to comply with the law, without not complying at all. A couple of solutions!

What if your office number says be sure to "ASK FOR J SMITH REALTOR?" 888-888-8888
Does the law say your office number has to be on the top or the bottom of the page?
Direct Office Numbers that have priority placement can have Voicemail Call Forwarding.

What ever we do, we must comply with our own state license laws as written. That is very easy to do, and still get the calls!

Agents that do not comply with the law are breaking the law and can be responsible for the penalties.

FEB

2007

Jim I agree with you and touched on the new Realtor COE SOP Article 12 adoptions and amendments that just happened this last month. There are stealth Realtors here on AR.

Jim,

I want to thank you for posting this. Your point is so completely correct, and I'm disappointed that I did not even realize or think of that before. Fortunately, I do not have this problem. But I was days away from creating a problem for myself.

I've been working hard on my website for several months, but just not yet getting the lead results I wanted from it. A lot of visitor traffic, not a lot of clients. I had been talking with a lot of people about ways to better capture leads from my site, as I do draw a good amount of traffic. Nearly everyone I spoke with suggested going with a second site, a "stealth" site. I had given it thought for a couple months, but never actually decided if I wanted to do it or not. I'm glad I read your post and I'm happy I avoided creating one. Thank you!

Renee it all needs to change. RE: Realtor COE SOP Article 12 - I have been spearheading the change in the code of ethics for Internet ethics since 2001. (See Articles Below) Much of what was adopted were from my proposals. The problem with the Code of Ethics does not go far enough. There is always a Lex Luther in real estate thinking that they they are very creative, except for the matter of fact they are criminially insane! We need to bring out bad behavior to our brokers and regional Assn of REALTORS, and stop it. It gives all hard working REALTORS a black eye! It cannot be tolerated, otherwise the state will step in and start mandating their own laws. Then we will all suffer. My articles for http://www.realtytimes.com/ were cited in all papers leading up to these changes.

Internet Ethics Needed For On-line Marketing - by Jim Crawford
A Proposal For The NAR: Internet Standards - by Jim Crawford
Disturbing Internet Trends in Real Estate - by Jim Crawford
Do You Identify Your Broker, Your Licensure On Your Website? - by Jim Crawford

Brian,

You have a great website. Have you ever considered or is it impossible to remove addresses from the IDX search? On some IDX searches there is control over this. Just do what you are allowed to do in your area. But if a viewer to your site and see all thee information free, why would they contact you? In the real world it does not work that way. If you can turn off the addresses, your leads will increase, both on phone and emails...and closings!

Florida requires that whenever you have any contact information, that you also state your broker.

Thanks Sharon! Does the contact information have to include office which you are licensed at, or licensure disclosure?

FEB

2007

I am surprised that the laws in every state are different, but one should know the law of advertising in their own state.

Good informative post today, thank you! I often see sites that don't comply with the guidelines and nothing seems to happen with them. It is good to know what is right and fair and maybe every office should implement a standard letter of guideline if an agent has their own real estate site. This letter could be given out to all agents within the office. No one ever told me about what should be on my site or what not to have on there.

Patricia Aulson/REALTOR SEACOAST NH, ME & MA

The State of Maryland requires that all agent sites identify the broker by company name or broker name, not logo, broker phone number where the broker can be contacted without going through the agent.

There are many, many sites that don't identify the broker. Brokers rarely review these agent's sites althogh they are, as Jim says, responsible.

Also, there are a LOT of web sites that don't have the Fair Housing info OR logo. Bad news. One of these days, HUD will do a sweep and bring a lot of agents and brokers into compliance.

FYI- I know you know this, Jim, but for those reading...

Code of Ethics Standard of Practice 12-5

REALTORS^® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR^®'s firm in a reasonable and readily apparent manner. (Adopted 11/86, Amended 1/07)

The major problem with REALTORS®' personal websites around here is the fact they don't post the name of the broker, just the franchise. Also, there's no fair housing information and the phrase if applicable "each office independently owned and operated".

There are a lot of people who feel they have to push the limits of the rules so they have an advantage over those of us foolish enough to fully comply with the law. Most of the time they do not help themselves and leave themselves open to real problems. There are also a lot of us who may be bending the rules without even being aware of it.

Jim Jacobs www.YourUltimateTeam.com www.Jupiter4Homes.com

What do the rules state about sites that don't actually have actual listings on them? I started creating a website for my company when it was in the formation process... I could not actually post listings, because the company was not authorized to do so. However, I could put up a shell with some content on the area and start the SEO process. On the internet, "advertising" is a tricky subject, because every website is not advertisement. How do we, or the ruling authorities differentiate which ones are or are not?

In the case of my company, I created a webstie and had to put a disclaimer on there that I was not open for business... luckily for me, the state license came through as I was hitting some good spots on search results and have been getting leads from my website from the first day I was legal to be open for business. This was obviously a good strategy, but at the time I was developing the site, I was employed by a broker, who was warning that I could be breaking "the rules".

Loads of great comments here!

Lenn - "The State of Maryland requires that all agent sites identify the broker by company name or broker name, not logo, broker phone number where the broker can be contacted without going through the agent.' I understand the reason for this in many states, including Georgia is because on consumer complaints against a particular agent, when person tried to contact the broker via the website, the only phone numbers were the agents. Persons were inadvertently contacting the person they wished to tun in, and opposed to the principle broker. So that is the dark side of Branding!

Rob - "What do the rules state about sites that don't actually have actual listings on them?" Without identification it is viewed as a blind site. Since it is not a personal page, the main reason for the site is business. Even in the early days of websites, brokers had policies of broker identification on at least the main page. The early sites on the Internet were really what are referfed to as "Brochureware!" They also did not really contain any listings, or only just the agents personal listings.

In NC, stealth site or not, you have to have your name, firm name, address, phone number. You also have to included what states you are licensed in.

Good points Jim. I was surprised that you didn't mention that any site an agent has should abide by the laws ... including the profiles here on AR. There are many violations to the profiles, and of course, every agent that has joined but not entered anything on their profile is in violation also.

You raise a good point Jim. Does anyone know where there is a list of dos and don'ts for agent websites?

I think full disclosure is smart. If you are licensed in several states, disclose it! I think that is smart!

I do not think there is one source for website compliance for all states. Does make you think about posting your homes listed for sale in Craigslist however! It's an ad!

The difference between myself, and a lot of real estate seminars speakers! My business is real estate, not seminars! I actually sell real estate day to day just like any other agent. It is my livelihood, and I always try to comply with he law! My life is not about hype, or trendy things, or isn't it clever to post an ad here or there! I can't do that! It may be illegal!

Also. in just about every state the principle broker is ultimately responsible for ads! Do the brokers even know this is going on? Creative marketing is one thing, breaking the law is another!

Thanks for the heads up. I immediately went to my website and added my brokers name, the other info was already there. I'm in California. Do we need to say what state we are licensed in?

Thanks,

Fran

I would, it just depends on what is required in your state real estate license law. I mean if we think about it. Firm Name, address, city state zip and office phone number. That covers identification - but real estate license law varies from state to state.

Jim: Your posts on this subject are great and I am glad you are addressing this issue! Thank you!

FEB

2007

Anytime. I think there are a lot of issues that need to be addressed in our industry - these really benefit all!

I have seen several websites that do not conform to the law. I am amazed that people are willing to put their license and reputations at risk.

Thank you for the reminder. We are working on out site right now, and will take your comment as a guideline- it's easy to worry about design, exposure, etc. and neglect the simple LAWS!!

Jim,

I've seen a lot of this in my marketplace--even in print ads. If anyone starts policing those websites, there are going to be a lot of Realtors with egg on their faces.

Thanks for all the comments. I guess our brokers need to get involved. They are responsible to review ads, and a website is not any different. When we consider a classified, print media the web is totally different. When you consider a website is doing it's job marketing 24 hours a day, 7 days a week, 365 days of the year, and it is toatally global...there is no shelflife! It needs to be doen correctly.

MAY

2007

I do real estate web design. My clients have a built in search engine using the MSN API, which is freely available so people can add search functionality in their site(s)

I got this guy named Gene Ward threatening a lawsuit because there is a link on my client's website pointing to HIS OWN SITE, promoting him and his service. He should be THANKFUL for the extra traffic! He types in "Gene Ward Real Estate" (ego surfing) and finds his link on my client's site.

Because my client shows up high in the search engines on a page he's on, he's not happy.

Its amazing that people still don't understanding the internet and linking. Some people actually think you need PERMISSION to link to their site! Imagine if you had to get permission before you could make a hyperlink on the internet.. Imagine Google getting 6 billion permission slips!

Crazy world.. I guess you could sue someone for having brown eyes!

You better remove this post after I post it, because he'll probably find his name and demand you remove it..

Free Speech be damned.

Anyone have any advice when dealing with people like this?

I have found lots of case law..

http://www.elizabethleerealtor.com/removelink.asp but would still welcome any advice.

I get people like this that dont understand how the internet works, have a hot temper, refuse to listen to any explanation, take a look at case law, get all bent out of shape about twice a year, and would love to buy a legal form response to send them and their lawyer(s) if they should retain one.

Im sure Gene is a nice guy, just doesn't understand the internet or how linking works and doesn't want to let someone explain..

I welcome any advice and or pricing for the legal advice / forms you might be able to supply.

Wayne Bienek

http://www.webcontentsolutions.com

I do not know where to advise you to go. I do see that if the site is really a search engine that is a different issue, but if they are scrapping the Internet for high ranking sites in the hopes of boosting their own placement I have an issue with it, but I am not a lawyer.

MAY

2007

I also like the people who have their own property on their listing site with no OWNER/AGENT indicated.

In my licensed assistant posts one of the houses I showed was owner/agent and said it NOWHERE. We drove to the house 3 times and thought we weren't going to see it. The agent called and said her car was in the garage - what?! how do you show someone you're there??

Well... she was in HER garage!

How unprofessional! I agree I see it more and more often!

MAY

2007

Agents are not allowed to advertise their homes as for sale by owner here. They can be in huge trouble if they do not identify their brokerage on any marketing.

Randy that is a growing trend that I see as very healthy for the industry. For sale by owners cannot have their cake and eat it too! They either list and commit or do it as a for sale by owner, I know of many cases however, where brokers know it is the agent that is doing the soliciting, and asking if thye can place their sign in the yard of a for sale by owner. The brokers response is "YES" with a signed listing agreement!

MAY

2007

I am not aware of a shortage of homes to sell. I just do not understand some of these lazy folks.

That makes two of us! There are so many persons willing ot work with a professional...why bither for the rest? I mean sell your soul for a sign on a lawn where we do not even have a listing? I don't get it either!

MAY

2007

I am a relatively new Broker in Ca. One of the things our office is doing is making sure each agent has their own websites. I prefer the agents have their contact info on the sites, but also comply with CA law. Here, we must put our license number on the site, in fact there is specific wording to go with the license number-you have to have the state you're licensed in, as well as Department of Real Estate and the license #.

For print advertising we have my license number, and logo with name of the DBA (Co), but not my name specifically. I must admit I enjoyed the google results of my name, but the agent needs the calls, not me....

The problem we have is with Craigslist. Realtors post their listings on Craigslist and don't identify that they're listed by an agent. But you can always tell because the pictures say MLS at the bottom. Der. How hard is it to say you're an agent and identify your broker?

On my website, I comply with our state laws with my company's name, address and logo on every page. On my blogs, I comply as minimally as I can to stay within the law.

Kathy I like CA Law! "comply with CA law. Here, we must put our license number on the site..."

Amy I wrote an article I wrote for RealtyTimes.Com Addressed this issue:

Do You Identify Your Broker, Your Licensure On Your Website?
by Jim Crawford

Ben Interesting point.... re compliance for RE BLOGS!

MAY

2007

Agents should list the name and phone number of their broker as that is who is responsible for them - don't forget the fair housing logos..............

Julie, would'nt it begreat if the NAR Code of Ethics erquired this of all Realtors? Since there are 50 states with different requirements, NAR should lead the pack!

JUN

2007

Now I have to go see if I'm breaking the law now..

Eric is is alwasy good to comply!

Wow! I did not realize that so many people did not follow the rules and regulations of real estate law. My real estate academy went over in great detail regarding how to promote your business in flyers, newspapers, and websites. I have even seem some real estate agents on billboards without their brokers logo or name on them.

Thanks for the great tips and reminds of how important this issue is.

JUN

2007

Sonja, actually your broker is responsible for reviewing ads for compliance!

MAR

Thanks for this article, Jim, and good question as to whether our own web sites comply with local law on identification of licensure, brokerage, etc.

Thanks for the good writing and encouragement for us to maintain compliance with law about ethics and the real estate business. Best Wishes to you as always.

Harrison K. Long - Realtor & Broker (Explore Group Properties, Coldwell Banker Previews, South OC) Thanks. I like to stay on top of this. Lately I am noticing a large number of agents into blind and branded sites that have no agents name or brokerage affiliation or contact information available to the public. Most are probably a direct violation of most states real estate license law.

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