June 10th - 2007

Same advertising rules apply for REALTOR® Web sites

Web presence in the early days of the Internet was mainly limited to big business.

Web presence in the early days of the Internet was mainly limited to big business. However, a recent report by Internet research firm Netcraft states that the total number of Web sites on the World Wide Web has passed the 100 million mark with much of the recent growth being attributed to small business.
 
This wave of Internet technology is also having a notable impact on the real estate industry and the way consumers buy and sell homes. For example, 77 per cent of homebuyers begin their search for a home on the Internet before engaging a real estate salesperson according the National Association of REALTORS® (NAR) Profile of Homebuyers and Sellers.
 
In response, NAR says the number of REALTORS® with Web sites has increased 129 per cent over the past five years. Basically, if you aren’t advertising your listings and services online, you are considered to be living in the Dark Ages.
 
But, just like any other form of real estate advertising, there are many rules governing Web site real estate advertising designed to protect the consumer.
 
Under REBBA 2002, the Registrar has new powers regarding false advertising. In addition to ordering the cessation of false advertising, the Registrar can also order registrants to retract statements or publish corrections. Registrants may also be required to have their advertising pre-approved by RECO for a period of up to one year if they are found to be in violation of this rule.
 
In many cases, not only is the registrant found in breach of the Code and fined or punished, but the brokerage may also be held accountable for the infractions. At the very least, violations by individual sales representatives could harm the brokerage’s reputation. In order to avoid non-compliance by any of their sales staff, some brokerages have developed strict policies governing Web site advertising including monitoring the Web sites of each individual salesperson.
 
To help brokers set up office policies on advertising and to ensure registrant Web sites comply with the REBBA 2002 advertising guidelines, RECO has a Web site Advertising Checklist available at http://www.reco.on.ca/. Check under REBBA 2002 – Advertising. As well, the Guide to REBBA 2002 which includes several sections related to advertising and the Advertising Guidelines are available at RECO’s Web site.
 
Dos and Don'ts for advertising:
The advertising checklist on the RECO site and the Advertising Guidelines are much more extensive, but here are some of the tips that you will find:

  • Do ensure the name of the brokerage and the name of the registrant appear as they are registered with RECO and appear prominently on every page of your Web site
  • Do ensure the designation “Brokerage” or “Real Estate Brokerage” and the registrant’s designation, i.e., “Broker of Record” or “Sales Representative” appears clearly with the brokerage name and the name of the registrant.
  • Don’t use terms such as “Group” or “Associates” to refer to your team. Any terms other than “Team” are not permitted.
  • Do provide an appropriate method to contact the brokerage directly – either by a phone number, mailing address or email address that has been provided to the Registrar.
  • Don’t refer to yourself or other registrants as “agents.”
  • Do avoid fine print disclaimers. If disclaimers are used, make sure they are obvious to the reader and that the overall impression created by the ad and the disclaimer is not misleading. RECO requires that disclaimers are easily read.
  • Do avoid using terms or phrases in an ad that are not meaningful and clear to the ordinary person.
  • Don't make performance claims such as “#1 Sales Representative in Anytown” or “The largest brokerage in Anytown” unless they are accurate and verifiable and you can substantiate them.
  • Do include a privacy policy on your Web site.
  • Do get permission from the applicable party (seller, buyer, their representative) to advertise a property on your Web site, including its address, pictures, location and/or transaction details.

By the book
The same rules apply under REBBA 2002 and the REBBA regulations (including the REBBA Code) whether advertising in print or on the Internet. Section III of the RECO Advertising Guidelines states: “In all Internet advertising, registrants must include all of the disclosures required by Section II of these guidelines, regarding registrant identification on every screen.” (CODE, Subsec. 36).
 
In addition:

  • All Internet advertising must be provided in a manner so that the person attempting to access information is not required to incur any obligation or provide confidential information in order to do so (CODE, Subsec. 37).
  • Any disclaimers appearing in Internet advertising must be provided on the same screen as the promotional information to which the disclaimer relates (Sec. 37).
  • All written disclaimers or qualifiers must be clearly linked to the relevant claim. For example, an asterisk, double asterisk, cross, etc., which appears after the statement to which the disclaimer relates, must be unique in that advertisement to that statement and the accompanying disclaimer and be the same size in relation both to the relevant statement and the accompanying disclaimer. For example: Claim A* - *Disclaimer A.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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