Real Estate Blog - Stealth Sites

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Stealth Sites - Legal? Ethical?

I've noticed a disturbing correlation between the use of stealth sites and "top producing agent" status.

What impact are the stealth sites having on the total production of those that use them?

Isn't a totally "stealth" site in violation of NAR's REALTOR Code of Ethics at a minimum?

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)

Standard of Practice 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. (Adopted 1/07)

Isn't a totally "stealth" site flat out illegal in some states?

What does that say about those that use them?

Can't they be successful on a level playing field with the law abiding, ethical REALTORS?

Do they think that the rules don't apply to them?

Without their "stealth" sites would they drop off the map as a "top producer"?

What does it say to their prospective clients about the integrity clients can expect if they work with them?

If the brokerage information is clearly and prominently displayed on each page of the website - without having to scroll down to see it - then it's in compliance. But that kind of takes the "stealth" out of "stealth" - doesn't it?

Someone - please enlighten me as to how Stealth Sites can be legal, ethical and effective.

Posted by Tony Marriott, Associate Broker, CRP, CLHMS, CRB, CRS ~~ Phoenix Arizona on 08/23/2008 10:13 AM

Comments (18)

stealth, illegal, unethical, top producer

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18 Comments on Stealth Sites - Legal? Ethical?

AUG

2008

I wish you had enlightened me on what a steath site is and give an example or 2. I know the NAR rules on this but do not know what you are blogging about. Sorry for my ignorance

I don't think they they are legal and ethical. But I also don't think that the various state's RE commissions are really going after the perpetrators. I ran across one not long ago that there was no connection to an agent, except that the property was a listed property. There was no link to a site with a disclosure. And the only way to find more was to fill out a contact form.

Charlie - I really don't want to open the can of worms by pointing fingers at specific sites / agents. Try searching Active Rain for "stealth sites" - you'll find some great examples.

Lane - I agree. In Arizona, any complaint made to the department has to be signed by the complainant - and once the complaint has been resolved - one way or the other - the complainants identity is a matter of public record.

I raised the same questions after one of the classes early this year at the CRS Sell-a-bration. One of the instructors and a couple of the students were talking about how many stealth sites they had and I spoke up. When we got down to it, one of them was compliant (his were not truly stealth) The other two may have a problem.

AUG

2008

Tony - totally and completely "stealth" is definitely "against the rules". Now, with that said, we have some sites that are probably considered "stealth" sites because our information is not "prominantly displayed" on every page of the site.

Our sites bring in leads - and they could definitely do better (which I will work on) - but they are also legal. I'm also not going to change them to have the company branded logo big and bold on every page either - consumers don't care about that - they care about listings and information.

Randy - I'm seeing more and more of this. It's unfortunate.

Christina - I'm a little confused. Either a site is in compliance - or it isn't. With respect - consumers (as a group) do indeed care about whether or not a site is an agent site. They are more likely to give their information if they are not aware the information is going to an agent (the whole point of "stealth"). In Arizona, the sites are both "illegal" and "unethical". How about Idaho?

I guess it depends upon your definition of stealth.

Here is our blog site blogcda.com - the information is on it but not prominant- but hidden and no big brand logo

Here is one of what I call our "stealth" sites - homesforsalecoeurdalene.com - the information is simply a footer in typical footer size font.

Both sites are in compliance for the state of Idaho and our brokers requirements

That's why I was defining - total stealth (no information about the site owner when a R anywhere on the site) vs. compliant stealth - it's there, you just have to look a little harder for it.

I don't hide who we are, either in how I word things on our sites or by not putting the information somewhere on the site, even if it isn't prominant (it's not on all but 1 of our sites).

I just took a quick peek - nice looking sites - and understand that they are both legal. Do you believe they meet the compliance test in the Code of Ethics?

Tony - I only ever compared them to state and local real estate requirements/law. What section of the code is it (or I can read the whole thing, no biggie) and I'll check it out.

With the recent changes, ie. requiring prospects to sign in to view MLS (not just an option for them), I know I need to change at least the search sites.

Christina - Article 12 - there is a link in my post above, plus a couple of the many SOPs...

" reasonable and readily apparent manner "

That's sure open to interpretation. To some that means front and center and bigger than life.

Ours is there, on the main page (AND on every single subsequent page of all sites) if you just scroll to the location (I don't think any are "above the fold").

Our Broker's feel our site information is "reasonable and readily apparent", apparently.

Christina - Having looked at your sites, I agree with you that they are in compliance with the C of E.

In Arizona, the Department requires the Broker info be above the fold.

Unfortunately, I'm become aware of sites in my market area that either fail to comply with the above the fold Department requirement, or omit brokerage info altogether. The message I get from those that operate sites that are clearly in violation is that they are incapable of being successful unless they break the rules.

AUG

2008

Yeah, that is a problem.

I am with these other folks...Can you pin the tail on the donkey and send us to a stealth site? Anyhow, I have a comparable. How about putting up signs for an open house on a bank owned property and the property is not bank owned. That is what I ran into in Oro Valley a few weeks ago. If you were a client and recognized the implications of this, would you want to do business with them?

Take a look at the examples Christina gives in one of her comments (above) and then imagine it WITHOUT the broker information. Voila - a "stealth" site.

I found an interesting public post here on AR with some examples:

http://activerain.com/blogsview/184826/SEO-For-Real-Estate

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