Consider the Code: Ethics for Everyday
NAR’s long-standing Code of Ethics provides consistent standards, guidelines, and language, which ensures REALTORS® conduct business with integrity. The Code is more important than ever when serving your clients and differentiating yourself as a professional. Consider the Code, Standards of Practice, and Case Interpretations to help guide your business decisions.
Question:
I’m working on new marketing materials, and I really want to show the value I bring as a buyer’s agent. I’m often able to save my clients money by negotiating on price. Is it fair to say that I can “guarantee savings”?
What does the Code say?
- Article 1: When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.
- Standard of Practice 1-4: REALTORS®, when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to savings or other benefits that might [emphasis added] be realized through use of the REALTOR®’s services.
Answer:
No, as it could be a violation of the REALTOR® Code of Ethics. According to Case Interpretation #1-23, Article 1 and specifically, Standard of Practice 1-4, advertising a guarantee of savings is misleading, because while savings may be possible, they cannot be demonstrated in every instance. Instead, promise only what you can deliver—and keep your promises.
Other considerations:
Beyond your ethical duties as a REALTOR®, IMLS subscribers are subject to the rules and regulations of the service, which specifies in Section 16.24 that:
MLS Participants shall present a true picture in their advertising and representations to the public, including Internet content posted, and the URLs and domain names they use, and Participants may not: Engage in deceptive or unauthorized framing of real estate brokerage websites; manipulate (e.g., presenting content developed by others) listing content in any way that produces a deceptive or misleading result; deceptively use metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, present content developed by others without either attribution or without permission; or otherwise mislead consumers.
While the IMLS rules and regulations focus more on the technology aspect, there is a clear directive to not mislead consumers.
Additionally, Idaho Real Estate Commission’s Guideline #13 discusses misleading advertising:
Section 54-2053(4) of the License Law prohibits a licensee from providing “misleading” information to the public or prospective customers or clients. Information is defined as misleading “if, when taken as a whole, there is a distinct probability that such information will deceive the persons whom it is intended to influence.”
Idaho Real Estate Commission’s Guideline #6 also discusses offering guarantees and is well worth reviewing if you’re considering adding a guarantee to your marketing efforts.
Ultimately, it’s better to play it safe and avoid any guarantee language in your advertising and marketing materials.
