The notes below are intended only to supplement a complete and diligent review of the related chapter in your course text. Studying these notes alone is not expected to be adequate test preparation.

 

 

ADVERTISING RULES

©Copyright 1998 - 2008 Tim Wyman. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of is prohibited. See Terms & Conditions to use this material.

 

Unless otherwise provided, rules apply to all categories of advertising including:

  • all publications

  • radio or television broadcasts

  • all electronic media including e-mail and the Internet

  • business stationery

  • business cards

  • business and legal forms

  • documents

  • signs and billboards.

 

Individuals operating as sole proprietors and licensed as employing brokers must display on the exterior of their maintained place of business:

  • their name

  • the words "Licensed Real Estate Broker"

 

Firms licensed as corporate or partnership brokers must display on the exterior of their maintained place of business:

  • their regular business name

  • the name of the individual licensed as their broker of record

  • the words "Licensed Real Estate Broker"

 

All advertising of any licensed individual, partnership, firm, or corporate broker must include their regular business name (the name in which that individual, partnership, firm or corporation is on record with the Commission as doing business as a real estate broker).

 

All advertising by a salesperson or broker-salesperson must include the name in which they are licensed and the regular business name of the individual, partnership, firm or corporate broker through whom they are licensed.

 

If an advertisement contains a reference to the licensed status of the person placing the ad, their license status must also be indicated through inclusion of one of the following descriptive terms as applicable to the individual:

  • salesperson or sales representative, or sales associate

  • where permitted by law, realtor-associate or realtist associate

  • broker-associate, associate broker, realtor-associate or broker-salesperson

  • broker

  • where permitted by law, Realtor or Realtist.

 

Advertisements containing the name of a salesperson or broker-salesperson must also include the regular business name of the individual, partnership, firm or corporate broker through whom that person is licensed in larger print or be displayed in a more prominent manner than the name of the salesperson or broker-salesperson.

 

Webpages established by a salesperson, a broker-salesperson, or a team of such licensees and not linked electronically to the webpage of the broker through whom they are licensed, must display the telephone number of the licensed brokerage office from which the individual or team operates as real estate licensees. That information must appear in wording as large as the predominant size wording on the webpage.

 

Where a webpage of an individual or team is linked electronically to the webpage of the broker it must display information which clearly indicates how to link to the broker. That information shall appear in wording as large as the predominant size wording on the webpage.

 

All advertising, except lawn signs placed on residential properties containing four or fewer units, must clearly indicate after the licensee's regular business name that the advertising licensee is engaged in the real estate brokerage business. Examples of permissible language shall include:

  • Realtor*  Define

  • Realtist*  Define

  • real estate broker

  • broker

  • real estate agency

 

*Using any trade name or insignia of membership in any real estate organization of which the licensee is not a member is not permitted

 

The preceding does not apply when the word "agency" appears in the advertisement as part of the licensee's regular business name or when the licensee has legal or equitable ownership of the property.

 

Any advertising which contains a home telephone number, cell-phone number, beeper or pager number, home fax number, or E-mail address of an individual salesperson or broker-salesperson, or a team of licensees, must also include the telephone number of the licensed brokerage office from which they operate. All such advertising shall also contain language identifying each number included in the advertising.

 

No advertising shall represent that a location is a place at which the business of a real estate licensee is conducted unless that location is the licensed main office or a licensed branch office of the broker.

 

Salespersons and broker-salespersons may not include in their advertisements any reference to a "home office."

 

The business card of any licensed salesperson must indicate that this licensee is a salesperson by the use of one of the following:

  • salesperson

  • sales representative

  • sales associate

  • where permitted by law, realtor-associate or realtist associate.

 

The business card of any licensed broker-salesperson shall indicate that this licensee is a broker-salesperson by the use of one of the following:

  • broker-associate

  • associate broker

  • realtor-associate

  • broker-salesperson

 

The business card of any licensed broker shall indicate that this licensee is a broker by use of one of the following:

  • broker

  •  where permitted by law, Realtor or Realtist

 

Advertisements that refer to amounts of down payment, monthly payment, or carrying charges, or which indicates that a mortgage is obtainable must contain the words "to a qualified buyer".

 

Advertisements which set forth amounts of down payment, monthly payment, carrying charges, taxes or mortgage money obtainable must contain qualifying words such as "approximate" or "estimated," which must be clearly associated with the amounts set forth in the as. The broker must maintain written proof of the validity of these statements in the broker's files for a period of 12 months from the date the advertisement last appeared.

 

Any advertisement for the sale, exchange or rental of real property, or any interest therein, shall  specify the municipality within which that property is located except in the case of magazine or newspaper advertisements published under municipality headings.

 

Licensees may not advertise or use any form of application or make any inquiry which expresses directly or indirectly any limitation, specification or discrimination as to race, religion, creed, color, sex, affectional or sexual orientation, marital status, national origin, ancestry or as to whether a person is handicapped.

 

Any use of an insignia, emblem, logo, trade name or other form of identification in any advertising or other public utterance, either by a single licensee or any group of licensees, which suggests or otherwise implies common ownership or common management among such licensees, is prohibited except in the case of branch offices controlled by a single broker or licensee and duly licensed as branch offices.

 

Use, advertising or display of any insignia, emblem, logo or trade name of any bona fide trade association of which the licensee is a member is not prohibited.

 

Any franchised licensee using in any advertising the trade name of a franchisor shall include in such advertising in a manner reasonably calculated to attract the attention of the public:

  • the franchised licensee's regular business name

  • the legend "each office is independently owned and operated"* or something substantially similar

 

*Legend need not appear on

  • "for sale" signs located on the premises of specific properties for sale;

  • small "spot" classified advertising in newspapers, magazines or other publications advertising properties. A small spot classified advertisement is defined as an advertisement which is no more than one column wide and 20 lines long and which describes no more than two properties

  • business cards

  • advertising placed or distributed by offices which are wholly owned by the franchisor

 

Advertisements referring generally to membership in a real estate multiple listing service must specify the complete name of the listing service, except in the following categories of advertising:

  • "for sale" signs and small "spot" classified advertising of any licensee as described above

  • business cards

  • business signs

 

Any home warranty offer contained in any advertisement shall comply with all Federal and State warranty legislation, including the New Home Warranty and Builder's Registration Act,  and the Magnuson-Moss Warranty Act. The advertising must specify whether the warranty is by inspection or non-inspection of the premises, whether the warranty is mandatory, and who is responsible for payment for the warranty. No advertisement shall contain an offer for a warranty unless a warranty may be secured for the property being advertised.

 

No offering of free, discounted or other services or products, including the offering of a free appraisal*, shall be made by a real estate licensee in any advertisement or promotional material or otherwise where the promotion or offering involves a lottery, a contest, a game or a drawing, or the offering of a lot or parcel or lots or parcels, or where the consumer is required to enter into a sale, listing or other real estate contract as a condition of the promotion or offer.

 

Use of such words as "included" or "included in the purchase price" in reference to items included by the owner in the sale of the real property is permitted.

 

*"Appraisal" as used herein is given its technical meaning as a study and analysis by an appraiser authorized by law to perform appraisals of New Jersey real estate to ascertain fair market value by using a process in which all factors that would fix price in the market place must be considered. A comparative market analysis or study is not an appraisal.

 

Whenever a licensee participates in a promotion or offering of free, discounted, or other services or products which confers upon the recipient a monetary benefit of greater than token value ($5.00 retail, the licensee must provide written disclosure (provided to consumers no later than when the free or discounted product or service is delivered to the consumer, or when written confirmation of the consumer's right to receive the free or discounted product or service at some future time is delivered) to the recipient of the promotional material or offering which includes the following:

  • that a consumer is not required to enter into any sale, listing or other real estate contract as a condition of their receipt and use of the free, discounted or other services or products included in the promotion or offer

  • whether the consumer is required to perform any action to qualify to receive the free, discounted or other services or products offered and, if so, what specific action(s) the consumer must perform in order to do so (a consumer's attendance at any listing presentation, informational session or other meeting is considered to be an action by the consumer)

  • if the delivery of the offered services or products does not occur at the time that the disclosure is provided to the consumer, the date by which the services or products will be delivered to the consumer if the offer is accepted

  • if a licensee has received, or will receive, compensation for participating in a promotion or offering of free, discounted, or other services or products, the compensation the licensee has received or will receive. Should the Real Estate Settlement Procedures Act be applicable to the arrangement between the broker and the person paying the compensation to the broker, the disclosure shall be in the form and substance required by that Act.

 

Licensees may advertise or place any sign which makes reference to the availability of a property which is exclusively listed for sale by another broker unless the licensee obtains the prior written consent of that broker. Such consent shall not be given or withheld by the listing broker without the knowledge of the owner.

 

When listings information is disseminated through the Internet by licensees other than the listing broker, listing brokers shall be deemed to have given consent with the knowledge of the owner where:

  • a written listing agreement contains the seller's authorization for information on the listing to be posted on the website of the broker, or of a multiple listing service to which the broker belongs, or of another party to which the broker or such an MLS submits information on listings; and

  • the website on which the listing information shall initially appear has instituted no measures to prevent other parties with websites from utilizing an electronic link to enable consumers to view that information while remaining in the website of the other party.

 

Licensees may not indicate in any advertisement  (includes communications to other licensees) that a property has been sold, or that they participated in the sale, until a closing has occurred at which title to the property was transferred from the seller to the buyer.

 

After a sale contract emerges from Attorney Review or a contract not subject to Attorney Review is fully executed and delivered to all parties, but before a closing occurs, any advertisement of the property shall include the term "under contract."

 

If an advertisement includes a statement indicating that the advertiser is licensed by the New Jersey Real Estate Commission must immediately thereafter also include the following statement: "Licensure does not imply endorsement," in a clear and conspicuous manner. This does not apply where broker are required by regulation to use the phrase "Licensed Real Estate Broker."

 

Where an advertisement includes any reference to a commission rate or compensation amount charged by the advertising licensee's brokerage firm or by other brokerage firms the following statement must also be included: "In New Jersey commissions are negotiable" in a clear and conspicuous manner.

 

No advertisement shall contain false, misleading or deceptive claims or misrepresentations.

 

 

 

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Created and maintained by: Tim Wyman, Licensed New Jersey Real Estate Instructor
©Copyright 1998-2009 All Rights Reserved
The Professional School of Business
mailto:tim@njretest.com