Real Estate Principles, 10Th Edition

Illinois Real Estate Managing Broker Prelicensing

Chapter 7: Marketing and Advertising

Lecture Outline

Learning Objectives:

Identify the role the Illinois Real Estate License Act of 2000 plays in advertising
Describe the role social media plays in marketing and advertising
Explain the requirements of Internet advertising
Distinguish between the National Do Not Call Registry, CAN-SPAM Act, and the Junk Fax Prevention Act
Define the following key terms:

advertising

CAN-SPAM Act

fraud

Junk Fax Prevention Act

marketing

medium of advertising

National Do Not Call Registry

negligent misrepresentation

puffing

social networking

team

Outline

Definitions

•Marketing is the process of selling products or services to clients and customers and promoting them via advertising to further enhance sales.

•Advertising is one form of communication intended to persuade clients and customers to purchase or take some action through the marketing process.

Section 10-30 of the Illinois Real Estate License Act of 2000

•“No advertising . . . shall be fraudulent, deceptive, inherently misleading, or proven to be misleading in practice. Advertising shall be considered misleading or untruthful if, when taken as a whole, there is a distinct and reasonable possibility that it will be misunderstood or will deceive the ordinary purchaser, seller, lessee, lessor, or owner. Advertising shall contain all information necessary to communicate the information . . . to the public in an accurate, direct, and readily comprehensible manner.”

Code of Ethics on Advertising

•Realtors® shall not print, display, or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations, or discrimination based on race, color, religion, sex, handicap, familial status, national origin, or sexual orientation

Advertising Requirements

•Licensee name

•Company name (as registered with the Illinois Department of Financial and Professional Regulation) and company city/state

•Geographical location of the advertised property

•Enough information to convey the message in a truthful and comprehensible manner

Advertising Personal Real Estate for Sale

•“Broker-owned” or “agent-owned”

Phone Book Listing Advertising

•Licensees must not place their own names under the heading “Real Estate” in a telephone directory or otherwise advertise their services to the public through any media without also listing the business name of the sponsoring broker with whom they are affiliated

Internet Advertising

•Must include proper identification—licensee name, company name, company location, and geographic location of property

•E-correspondence, bulletin boards, or e-commerce discussion groups require licensee name, company name, and company location

•Links to listing information sites

–Permitted without approval unless the Web site owner requires approval for links to be added

–Must not “mislead or deceive the public as to the ownership of any listing information”

NOT Allowed in Internet Advertising

•Advertise a property that is subject to an exclusive listing agreement with a sponsoring broker other than the licensee’s own without the permission of and identifying that listing broker

•Failure to remove advertising of a listed property within a reasonable time

Code of Ethics

•Information presented, provided, or displayed on Realtor® Web sites. The Realtor® shall use reasonable efforts to ensure that information on the Web site is current.

•When it becomes apparent that information on a Realtor® Web site is no longer current or accurate, the Realtor® shall promptly take corrective action.

Advertising and Social Networking

•Listing agreements should contain language that gives licensees the authority.

•Sellers and buyers must be informed and educated on social networking.

•Licensees should have proper authority from sellers and buyers to advertise using social networking sites.

The National Do Not Call Registry

•Phone numbers of consumers who do not want to be contacted by commercial telemarketers

•18 months’ rule for customers with established relationships

•If the consumer asks company not to call again, company must honor the request

Additional Advertising Rules

•CAN-SPAM Act

•Junk Fax Prevention Act

•Puffing versus misrepresentation

•Team advertising