Social Media Ethics for Real EstateMARKI LEMONS-RYHAL

Learning Objectives  Upon completion of “Social Media Ethics for Real Estate” class, you will be able to:

Define Social Media  Identify two key aspirational concepts found in the Preamble to the REALTORS® Code of

Ethics

Describe “general business” ethics, and compare and contrast the REALTORS®’ Code of Ethics with business ethics

Explain the concepts established in Articles 1, 11,12, and 15 of the Code of Ethics

Summarize possible violations of the Code of Ethics specifically related to the Articles 1, 11, and 12 after reviewing case studies

Explain the professional standards process for enforcing the Code of Ethics

• IMMEDIACY• FREQUENCY• LONGEVITY• GIVE TO GET• GENUINE INTEREST• ENJOYMENT AND FUN• INSTANT INFORMATION ACCESS• AUTHENTICITY

Recognizing New Rules

1908 1913

Code of Ethics Adopted in

1913ESTABLISHED PROFESSIONAL STANDARDS FOR CONDUCT

FIRST ETHICAL CODE FOR BUSINESS AFTER MEDICINE, ENGINEERING, AND LAWFOCUSED ON:

• Service to the public• Commitment to professionalism

INCLUDED “DUTIES TO CLIENTS, CUSTOMERS, PUBLIC, AND REALTORS®”

Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities whether

conducted personally, through associates or via technological means.

What Is Social

Networking?

Issues with Social Networks

PostingsWebsite

Integration

Updates

Links

Connections

Maintain and improve the standards of our calling including the risk and

benefits associated with relevant technology

“As a practical matter, social media is now a regulated

industry; and all stakeholders are responsible for compliance with the FTC Guides. As a result, all marketers, agencies, and brands

must develop a culture of compliance.”

-Tony DiResta, Partner at Winston & StrawnGeneral Counsel of WOMMA

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the

interests of their client.

“Protect the consumer, and

you protect the opportunity”-Michael Becker,

Managing Director for North AmericaMobile Marketing Association

Article 1 Case Study

Carl Ryhal a Broker with Inman Real Estate Services & Sales posted a photo of an executed sales contract on Facebook. Broker Ryhal did not have the buyers to sign a buyer’s agreement. The buyers have introduced Broker Ryhal as their “agent” to their friends. The property has not closed and it is not public information that there is a pending transaction.

1) Is Broker Ryhal in violation of Article 1?

2) If you answered “Yes” please explain why.

3) Brokers Ryhal primary obligation is to:a) Clientb) Customerc) Agentd) Broker

4) What would Broker Ryhal need and from whom to make his actions acceptable?

Tell clients do not discuss

their real estate

transaction ONLINE

Article 11REALTORS® shall not undertake to provide

specialized professional services concerning a type of property or service that is outside their

field of competence unless they engage the assistance of one who is competent on such

types of property or service, or unless the facts are fully disclosed to the client.

BE AND

TRUTHFUL IN COMMUNICATIONS

Article 12

Present a “true picture” in advertising,

marketing, and other

representations.

Ensure that your status as

real estate professional is readily apparent in

advertising, marketing, and other

representations.

ONLY 1 Out Of 4

Informal Posts May Be

“Advertising”They consider a message that “is

designed to attract public attention or patronage to a product of business,”

an advertisement. It is narrowed down to directly or indirectly.

Regulatory Compliance Issue

Article 12REALTORS® shall be honest and truthful in their real estate

communications and shall present a true picture in their advertising, marketing, and other representations.

REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising,

marketing, and other representations.

Article 12 Case Study

REALTOR® Allen of Get It Done Real Estate is a forward thinking broker who is abreast of current marketing tools for real estate. REALTOR® Allen is a big fan of Instagram and markets listings daily via Instagram. The properties that REALTOR® Allen markets are not listings of his sponsoring broker but listings of top firms in the areas that he serves.

REALTOR® Allen learned today that Big Realty has filed a complaint against him and his sponsoring broker Get It Done Real Estate for violating Article 12. Big Realty has stated that REALTOR® Allen and Get It Done Real Estate have advertised a property without authority and presents a false picture on Instagram and the internet to potential buyers and sellers.

During the hearing it is revealed that in REALTOR® Allen’s marketing he has never disclosed the name of the real estate firm he is affiliated with and none of his post link to a display that includes the firm he is affiliated with.

1) Has REALTOR® Allen violated Article 12?a) Yesb) No

2) Which Standard of Practice applies to this situation? a) Standard of Practice 12-4b) Standard of Practice 12-5c) Standard of Practice 12-10d) All of the above

3) Is there anything else that REALTOR® Allen may have violated?

ALWAYS GET PERMISSION FROM THE SOURCE AND

GIVE THEM CREDIT.

Article 15The obligation to refrain from making false or misleading statements about other real estate professionals, their

businesses and their business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish 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.

Social Media Ethics for Real Estate©