A broker recently called me with a complaint about an advertisement by a competitor that appeared in a local community newspaper. The ad featured a detailed description of the other agent's services and two listings the agent currently had available for sale. Unfortunately, the advertisement failed to identify the agent's brokerage firm. Is this a violation of the Code of Ethics?

 

There are several potential concerns pertaining to advertisements. First, Standard of Practice 12-5 of the states "REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property without disclosing the name of the firm." Thus, any advertised listing must include the name of the agent’s firm.

Unfortunately, this advertisement may also implicate state licensing regulations. This is one of those few cases where the VREB regulation is broader in scope than the Code of Ethics. The Department of Professional and Occupation Regulation (DPOR) current rules state, “The firm's licensed name must be clearly and legibly displayed on all advertising.” (18 VAC 135-20-190(B))

Additionally, the VREB defines “advertising” as “all forms of representation, promotion and solicitation disseminated in any manner and by any means of communication to consumers for any purpose related to licensed real estate activity.” (18VAC135-20-190). Thus, email messages, Web sites, chat room discussions, etc. will also be covered by the requirement to disclose the name of your firm.

Commercial Council