Informal Ad - Absence of Name on Sign

Dear Shannon:  I’m the listing broker at a busy, medium-sized brokerage focused on residential property. One of our sales associates wanted to sell their vacant lot, so to let people passing by know it was available, we put up a simple sign that read, “For Sale – Call XXX-555-5000.” It was easier to put my sales associate’s home number on the sign, so they could better field inquiries from potential buyers. A potential buyer called the number, and my sales associate handled the call. But then we were blindsided when that potential buyer filed an ethics complaint against us, alleging a violation of Article 12. At the professional standards hearing, I explained that the sign was not a formal advertisement like an online ad, business card or billboard, which I understood Article 12 applied to. I’m unclear how we were found in violation of the Code of Ethics in this case. – Informal Ad

Informal Ad:  Thanks for reaching out for education on this topic. Let’s take a look at Article 12, as it relates to your situation. Then we’ll look at applicable Standards of Practice (SOP) 12-5 and 12-6 for guidance on further interpretation of Article itself.

First let’s look at the language of 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)

You stated your ad was not ‘formal’ and that’s why you didn’t include details about your status as a real estate professional. However, Article 12 states; “REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations . . .”Notice there is no mention of the applicability of this Article hinging on ‘formal’ vs ‘informal’ advertisements. Because there is no mention of such distinction, the Article should be read to include real estate advertisements regardless of formality.

Next, let’s look at SOP 12-5;

REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or 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 either in the advertisement or in electronic advertising via a link to a display with all required disclosures. (Adopted 11/86, Amended 1/16)

Not only does Article 12 require that you and your sales associate identify yourselves as real estate professionals in your real estate advertising, but also, per SOP 12-5, you were required to include the name of your firm. SOPs help interpret the Articles. Because the name of your firm was not included in your ad sign for your sales associate’s vacant’ land, this too would have been an issue under Article 12. Note again there is no distinction made between formal or informal advertisements.

Finally, look at SOP 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)

Your ad simply stated the vacant lot was for sale and to call a phone number. SOP 12-6 requires Realtors to include their status as both owners and as Realtors or real estate licensees and neither was included in your advertisement. This is another issue under Article 12.

I’m not surprised your vacant lot ad was found in violation of Article 12 of the Code of Ethics.  I hope this helps you understand that regardless of whether your real estate ad is formal or not, the Code still applies. Thank you for reaching out on this and for being open to learning more about what constitutes a violation of the Code.

Inspired by Case #12-1: Absence of Name on Sign. Other laws and rules apply.

Shannon Allen is an attorney and Florida Realtors Director of Local Association Services

Note: Advice deemed accurate on date of publication

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