As one that searches the Internet everyday looking at
real estate Websites, checking Website placement and doing real estate
Internet research, I come across a lot of things. It's amazing how many real
estate Websites never identify agent, brokerage, state of licensure, and if
the agent or brokerage is even licensed to do business in that state or any
state.
Unfortunately, this seems to be a growing trend.
Well-placed sites within the search engines are cloaked
as information portals offering free advice, and ask the consumer to just
fill out the following form so "we can better assist you." Those of us that
are savvy to the agenda know that it is more about harvesting referral
leads, selling leads for mortgages and financing, and in general making
money than in serving the consumer.
We must stop and ask - do they have a right to do this?
This is a situation that cannot be ignored by our industry. Those that are
not legitimately licensed in a state or jurisdiction can bypass all license
law, doing real estate with impunity in a states or which they are
unlicensed. It is a major dilemma for our industry and will tarnish the
public's perception of real estate industry as nonprofessional, deceptive,
and lacking ethics. Since there is no concerted effort to make members
conform to any standards in regard to Internet business: brokers, the
National Association of REALTORS
(NAR), agents, brokers, and state regulatory agencies all have a share
in the blame.
It is mind boggling in this new technology millennium,
that there is absolutely no policing of the current situation by brokers,
local boards or state regulation authorities. Are they out to lunch? Since
many do not understand the nature of the Internet, they avoid the issue, and
focus on displayed listing agreements, broker reciprocity, IDX, and virtual
office Websites (VOW’s), but those are profit and listing control issues
that don’t take into account how individual licensees’ Websites are used. We
must keep in mind that marketing is an interaction at a primary level with
consumers, and as well as ethical issues, we must comply with license law if
any.
Since most in the real estate industry agree that the
Internet drives more business, sells more homes than traditional marketing,
newspapers, direct mailings, magazine ads and direct mailings... then why do
we not have to comply with the minimum standards for identifying ourselves
on the Web? The market exposure of the Internet takes our advertising
outside our local communities, across state lines, across International
borders, and around the globe twenty four hours a day, seven days a week!
That means the potential for fraud, and deception increase exponentially!
Since our brokers are the first line of defense in complying with license
law… doesn’t it make any sense they should review the websites of all agents
that are under their license?
So there are many levels of noncompliance to state real
estate license law. Most states have minimum requirements for real estate
advertising and in print media. We conform to required state license laws in
our printed ads by including: name of licensee, address of brokerage where
we are licensed, city, state, zip code, and a phone number in all our
printed ads. To ensure compliance in most jurisdictions the broker is
ultimately responsible to review those ads before they are run or published.
So if the Internet is so much more visible to the public at large why do we
not have any supervision? Many real estate sites are cloaked in total
anonymity! There is no identification whatsoever that identifies a licensed
broker privilege of state license to do so. A few states have set minimum
requirements for real estate web sites to comply with similar identification
on the main or index page of a real estate web site, but there are no teeth,
supervision or policing this policy to be effective.
Another disturbing trend in our real estate industry that
is now very common on the Internet…is that many agents that brand their own
image have totally neglected to even mention the firm in which they are
associated with, nor the location of the office in which they are licensed!
In this sense, branding of this sort is a total marketing ego trip that just
ignores the law. A willful omission of this sort is inexcusable, and their
managing broker is accountable for the agents’ lapse of discretion. Why is
this important?
It is important because we are accountable not only to
state license law, but to the public at large for our behavior. It sets a
stage that this overwhelming marketing gap could be tantamount to massive
fraud and misrepresentation. In an unregulated, and unsupervised scenario,
one can skirt any real estate license law to do business without licensure.
The public is at major risk. As an industry we need to do something ASAP,
before we are regulated by the state, and lawsuits that will further tarnish
us for years to come.
Since this topic is not a localized one, and deals with potentials of
fraud, consumer perception of our industry, interaction between agents, and
brokerages, and non compliance with state real estate license regulatory
law, the National Association of Realtors must get involved. We need
proactive interest in this area. As members of the NAR, we can appreciate
the value of our national standards of ethics, and know that with this
fundamental change in marketing our products and services, we must
accommodate and define policy in this uncharted territory. It will be easier
for all if change is implemented within our own industry, rather than when
it is too late and we are regulated by the state, lawsuits, and litigation
for deceptive practices. Compliance and ethics can go a long way in
improving our professional image. So let’s not waste this opportunity to do
so.
Published: March 19, 2004
