Over the past several months, we've had both inquiries and complaints about agents advertising listings other than their own via newsletters, flyers, and other forms of written communication.

Let's try to resolve this issue.

The Code of Ethics addresses several aspects of this issue in their Case Interpretations of the Articles. Article 12 is commonly known as the "true picture" Article. It states, in part:

"REALTORS^® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations."

Case No. 12-12 - Advertising in the Guise of News and Case No.
12-13 - Advertising Including Information Based on Other Brokers' Transactions indicate that a REALTOR^® may advertise SOLD listings by stating "that all the properties on the list were the subject of recent sales transactions; that the period of time during which the transactions had closed was clearly stated; that the information was taken from the local MLS compilation of historical data; that the properties on the list had been listed and sold by various Participants in the MLS; and that such use was consistent with the local MLS rules and regulations."

So it is quite clear that when advertising Sold properties in a newsletter, you should include the above language. You should also disclose that "if your home is currently listed with a REALTOR^®, please do not consider this newsletter as a solicitation of that listing."

All of this information, however, did not address the advertising of ACTIVE listings. I placed a call to NAR and was informed that the only Standard of Practice that could be used was Standard of Practice 12-4 which states:

"REALTORS^® shall not offer for sale/lease or advertise property without authority."

However, NAR went on to say that they thought the whole issue of advertising Active listings would be regulated by our local MLS rules. A call was then placed to SCAOR to discuss our current MLS rules and regulations. Here's what we found:

Section 2.7 - Advertising of Listing Filed with the Service: A listing shall not be advertised by any Participant other than the listing broker without the prior consent of the listing broker except as provided in Section 16 relating to advertising of active listing information on the internet.

Section 13 - Limitations on Use of MLS Information: Use of information from MLS compilation of current listing information, from the Association's statistical report, or from any sold or comparable report of the Association or MLS for public mass-media advertising by an MLS Participant or in other public representations, may not be prohibited. However, any print or non-print forms of advertising or other forms of public representations based in whole or in part on information supplied by the Association or its MLS must clearly demonstrate the period of time over which such claims are based and must include the following, or substantially similar, notice:

Based on information from the Sussex County Association of REALTORS^® for the period (date) through (date).

So what's the end result of this whole article?

• When advertising SOLD listings, make sure you include the language listed above in Case No. 12-12. Be sure to also include the language about solicitation as listed above.
• When advertising ACTIVE listings, you must secure the permission of the listing Broker. So there will be no doubt that the permission has been granted, I suggest including:
  • the name of the listing Broker after the listing address, or, in the alternative,
  • a disclosure at the end of the ACTIVE list that "permission to advertise these listings has been granted by the listing Brokers of these listings. They are ABC REALTORS^®, XYZ REALTORS^®, etc."

I hope this clarifies the issue.

See you next week.