BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
Blogs
As we all know, “blogs” (short for “web log”) have become common on the Internet. And real estate is no exception.
Typically, many blogs in the real estate “space” are created and maintained by agents as a means to communicate to their client and prospect base, as well as a means to attract new clients.
The format of blogs tends toward being informal, breezy, easy to read and full of local information. This also can lead to problems.
Some agents, who would otherwise be cautious, have been known to write things that they later wish they hadn’t.
BLOGGER GETS SUED: For example, one agent in Florida wrote in a blog that a local developer was facing financial difficulties in the current market, had suffered a prior bankruptcy (apparently not true), and ventured the opinion that at least half of the owners in the developer’s 635-unit project would default.
The developer sued the agent and broker for defamation. And the agent lost his job. While the outcome of the lawsuit will not be known for some time, this case points out the perils of an agent getting carried away with blogging.
There are other cases of bloggers, while trying to demonstrate knowledge of the local real estate market, who have trashed other agents’ listings, or their pricing, or in some cases other agents themselves. Also, some blogging agents mention properties for sale without mentioning that they are listed with anther broker.
CODE OF ETHICS: Agents should remember that a blog is technically a website and must conform to the NAR Code of Ethics which provides in relevant part:
Standard of Practice 12-4: REALTORS® shall not offer for sale/lease or advertise property without authority.
Standard of Practice 12-8: “The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTORS® s’ websites. REALTORS® shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a REALTOR®’s website is no longer current or accurate, REALTORS® shall promptly take corrective action.”
Standard of Practice 12-10: “REALTORS® s’ obligation to present a true picture in their advertising and representations to the public includes the URLs and domain names they use, and prohibits REALTORS® from:
- engaging in deceptive or unauthorized framing of real estate brokerage websites;
- manipulating (e.g., presenting content developed by others) listing content in any way that produces a deceptive or misleading result; or
- deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, or to otherwise mislead consumers.”
Standard of Practice 15-2: “The obligation to refrain from making false or misleading statements about competitors’ businesses and competitors’ business practices includes the duty to not knowingly or recklessly repeat, re-transmit, or re-publish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means.”
PRACTICE TIPS:
1. Use your same high standards when blogging as in any other writing you would create for the public to read. The style can be informal, but the standards do not change.
2. While blogs may have an informal style remember that, even in the “blogosphere,” you are bound by laws, regulations and the Code of Ethics. This is not a place to deviate from your high standards and best practices.
3. Never advertise another agent’s listing for sale without the written consent of the listing broker (not listing agent – such a decision should be made by the broker). Some websites, blogs and on-line ads imply that the agent writing the information is the listing agent (e.g., “Call me for more information about this listing” when it is not your listing.). This could lead to an ethics complaint.
4. Review your blogs to make sure that the information is accurate and up to date.
5. Do not engage in gossip or passing along unverified information.
6. When in doubt – leave it out. Better not to publish an item than regret it later.
Just ask the agent in Florida!
This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
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