NAR’s Code of Ethics Takes Aim at REALTOR® Web Sites

By Henry Lerner, Esq.

January will bring a number of changes and additions to the NAR Code of Ethics. Several of these changes specifically affect online advertising and the content of REALTORS®’ web sites. REALTORS® not in compliance with these new provisions would be wise to start modifying their online content to assure compliance in 2007.

The meatiest of these changes are found in Article 12, which adds two new Standards of Practice aimed specifically at web sites and online advertising. The first of the new Standards of Practice is as follows:

REALTOR® firm web sites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner.

Web sites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner.

Compliance with these new ethical requirements is simple. REALTORS® must make sure that their web sites contain the name of their brokerage and the state(s) in which they hold a license (i.e., those with reciprocal licenses would list both states). 

Although it isn’t specified whether this information needs to be just on the home page of a site or if it must be on every page of the site, the PA Real Estate Commission has a policy statement on Internet Advertising posted on its web site which suggests that every page of every web site should contain the name of the agent (if applicable), the name of the broker, the city and state in which the office is located and the states in which licenses are held. To minimize risk, it would be advisable to include the information on every page if possible.  [NOTE:  Issues Resource Center has links at http://www.parealtor.org/content/Advertising.asp.]

The second new Standard of Practice for Article 12 states:

The obligation to present a true picture in representations to the public includes information presented, provided or displayed on REALTORS®’ web sites. REALTORS® shall use reasonable efforts to ensure that information on their web sites is current. When it becomes apparent that information on a REALTOR®’s web site is no longer current or accurate, REALTORS® shall promptly take corrective action.

The intent behind the new Standard of Practice is to ensure that REALTORS® maintain up-to-date and accurate information on their web sites, although the reach and requirements of this Standard of Practice have been left open to interpretation.   

For example, many brokers include listing content provided by other brokers through an IDX feed. Some information in listings may be provided from public records or from other third-party providers. A web site might also contain a great deal of non-listing information provided by various third parties. The ability for a broker to change information on a web site may vary greatly depending on where the information came from and what rights the REALTOR® may have to change it, making it very difficult to describe exactly what it means to have “current” information and what constitutes “prompt[…] corrective action.”

As a general rule, brokers and agents should do everything possible to maintain the best data they can on their sites. If alerted that something may not be accurate, try to figure out where the data came from. If it is content created internally and can be changed, do so. Where changing the information is not possible, the best course of action is to send notification to the provider of the data, asking them to make it accurate. REALTORS® should keep a record of any requests made so nobody can later claim that they failed to act.

More information on the Code will be posted on web site and available through NAR web site and NAR REALTOR® magazine in January, which will have whole new Code as a pullout.