Unit 6 Flashcards
General requirements
All advertising (except as noted below for owner/agents) must:
be under the direct supervision of the principal broker
list the firm name and telephone number
In all advertising to sell, purchase, exchange, rent, or lease property, licensees must:
clearly indicate that they are engaged in the real estate business
advertise under the firm name
A licensee is exempt from the rules above if:
the licensee’s advertising includes the designation ‘‘owner/agent’’
the property is not listed
“For Sale” Signs:
A licensee must have written authorization from either the owner of the advertised property or the owner’s agent, before posting a sign in any location advertising the property for sale.
Brokerage Company and Franchise Advertising
A licensee using a franchise trade name, or advertising as a member of a cooperative group, must clearly and unmistakably indicate in the advertisement adjacent to any specific properties advertised for sale or lease in any media:
the licensee’s name
broker or firm name
firm telephone number (as registered with the Tennessee Real Estate Commission)
A licensee using a franchise trade name or advertising as a member of a cooperative group, when advertising other than specific properties for sale or lease, must include the following legend in the advertisement in a manner reasonably calculated to attract the attention of the public:
'’Each (Franchise Trade Name or Cooperative Group) Office is Independently Owned and Operated.’’
A licensee using a trade name on business cards, contracts, or other documents relating to real estate transactions, must clearly and unmistakably indicate:
his/her name and firm telephone number (as registered with the Commission)
that the office is independently owned and operated
Internet Advertising
There are no special rules for internet advertising. Rule 1260-2-.12 applies to all advertising “regardless of its nature and the medium in which it appears.”
Like other advertising, internet advertising must be:
under the direct supervision of the principal broker
free of illegal misrepresentations, and misleading or untruthful advertising
Anyone who suggests they are operating in the state when such is not the case is violating Tennessee Code Annotated 62-13-312 and Commission Rule 1260-1-.12.
Web sites with MLS listings:
If the web site provides access to MLS listings through the web site rather than by sending the user to another web site:
The web site owner’s firm name and telephone number must appear on each page of the web site.
If the web site displays “thumbnails” (descriptions using five or fewer selection criteria) of multiple listings, there must be a disclaimer stating that the listings may not belong to the firm whose web site is being viewed.
If any information is given regarding the listing agent, or if the web page displays listings containing more than five selection criteria describing the property, the listing firm’s name and phone number must be displayed and identified as such.
Advertising of gifts and prizes
A licensee may offer a gift, prize, or other valuable consideration as an inducement to the purchase, listing, or lease of real estate only if the offer is made:
Under the sponsorship and with the approval of the firm with whom the licensee is affiliated.
In writing, signed by the licensee, with disclosure of all pertinent details, including, but not limited to:
accurate specifications of the gift, prize, or other valuable consideration offered
fair market value
the time and place of delivery
any requirements which must be satisfied by the prospective purchaser or lessor
No cash rebates, cash gifts, or cash prizes may be paid to any person who does not hold a real estate license.
Discriminatory advertising
It is a discriminatory practice to advertise in any way that:
goods or services will be denied to any individual on account of the individual’s race, creed, color, religion, sex or national origin
the patronage of any individual is unwelcome on account of the individual’s race, creed, color, religion, sex, age or national origin
Discriminatory advertising is a violation of the Tennessee Human Rights Act.
Prohibited advertising practices
Among “prohibited acts” subject to discipline under the License Act are the following that pertain to advertising:
making any substantial and willful misrepresentation
making any promise likely to induce a person to enter into a contract or agreement when the licensee cannot or will not keep the promise
pursuing a continued and flagrant course of misrepresentation, or making of false promises through affiliate brokers, other persons, or any medium of advertising, or otherwise
misleading or untruthful advertising, including:
use of the term “Realtor” by a person not authorized to do so
use of any other trade name, insignia or membership in a real estate organization when the licensee is not a member
The Commission may suspend or revoke a license if a licensee is found to have committed any of these advertising practices.
