StraightTalk is a great place to start learning how living the code can help improve your business, but it’s no legal substitutue for the Code of Ethics.
Thoughts on Article 12
Advertising that works
When you present your services to the public (advertising, etc.) always tell the truth. Bending this rule almost certainly asks for trouble. By all means, tell the world what makes you a good REALTOR®. But don’t stretch the truth even a little.
For example, it’s ok to use the word FREE in your marketing materials. It’s a powerful word that sells. Just make sure to clearly state the terms of your offer and the availability of your product or service at the same time. Fudge on this one and watch how upset people become with you.
It gets trickier if you offer any kind of premium, prize or merchandise discount as an incentive to work with you. These things are not necessarily unethical—even if the prospect has to work with you in order to take advantage of the offer. But you have to be careful how you handle everything. Make sure you are clear in your offer; make sure the people who might benefit from your promotion have a clear and thorough understanding of the terms and conditions of the offer in advance. Certainly, make sure you understand and follow any limitations set by state law or the Code.
Here’s a biggie: Don’t put someone’s property up for sale or lease without their permission.
You’d think this would go without saying, but amazingly it’s happened. If you act as a listing broker or sub-agent, don’t quote a price different from the one the seller/landlord has agreed to.
Don’t advertise, and don’t let anyone working for you advertise any listing without telling people the name of your firm. If you own or have interest in any part of a property you are listing, make sure all prospects know this.
Don’t claim to have “sold” a property unless you are the listing broker or the cooperating broker. If you are the cooperating broker, don’t put a “Sold By” sign up without the permission of the listing broker. Simple enough.
Next: Working with other REALTORS®
Terms to Know:
Before we begin, there are several terms that appear in the Code of Ethics that could use a little clarification:
Client is anyone that you or your firm has a formal agreement to work with. It could be an agency relationship or you could be providing a non-contracted service.
Customer is a party to a real estate transaction who receives information, services or some other benefit from you, but doesn’t have a contract with you or your firm.
Prospect is a buyer, seller, tenant or landlord with whom you or your firm has no contract. An agent is anyone with a real estate license (though not necessarily a REALTOR®) acting in an agency relationship as defined by Virginia law.
Broker is someone with a real estate license (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and “broker” means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.
REALTOR® is someone who has earned his/her real estate license and also earned the right to use the title. REALTORS® serve many roles in different real estate transactions. For our purposes, we mean the term to be all inclusive, whether the REALTOR® represents a buyer, seller, tenant or landlord. Whether they provide contracted services or provide a service without a contract.