July 18, 2016 — One tool Realtors use to convince prospective sellers to get off the fence and into a listing agreement is to send postcards that say Just Sold or Recently Sold, which identify recent sales in the neighborhood based on statistical data from the local Multiple Listing Service (MLS). The cards may include the property address, number of beds and baths, sales price, days on the market and so on.
Use of statistical data from an MLS’s current supply of listings for mass-media advertising is permissible under MLS rules. Here are five things you should know before sending your first batch.
Active/pending listings could spell trouble
Promoting active listings or pending sales can be problematic. Because these properties are still subject to exclusive listing agreements with the listing broker, any specific details, such as an MLS number, address or other information that could point to a particular property could be a violation of Article 12 of the Realtor Code of Ethics. This is based on Standard of Practice 12-7, which requires Realtors to have the authority of the seller to advertise. Also, MLS rules clearly state any MLS participant other than the listing broker may not advertise a listing without prior consent.
However, the use of statistical data to promote active and pending sales is acceptable as long as it is not specific to a particular property. For example, your copy could read: Five listings in the Live Oak Subdivision just came on the market with list prices ranging from $250,000 to $450,000. Each features three bedrooms and two baths, and four properties went pending within 10 days, rounding out a hot market.
Check before listing sold properties
Before advertising a property as sold, check with your MLS to ascertain whether the rules allow you to reference specific property data on sold properties.
No mailing disclaimer required
Standard of Practice 16-2 in the Code of Ethics says general mailings (including Just Sold cards) addressed to prospects in a geographical area are ethical as long you do not use real estate signs, the MLS data or other information services to target properties that already are exclusively listed by other Realtors.
Note that the Code of Ethics does not require Realtors to include a disclaimer asking the recipient to disregard the mailer if they are currently listed with another Realtor. However, including a disclaimer may keep angry calls from listing brokers and sales associates at bay.
Timing is everything
Any print or digital materials based in whole or in part on statistical data supplied by the Realtor association or an MLS must indicate the period of time upon which any claims are based, and must include the following or a similar notice: Based on information from the association of REALTORS® (alternatively, from the ______ MLS) for the period (date) through (date.)
Offer a True Picture
To meet the true picture test under Article 12 of the Code of Ethics, the consumer must be able to discern that the listings sold or listed through the MLS were sold by participants from the MLS and not the sender of the Just Sold card, if the sender was not the listing or selling agent. A simple statement of this fact in the materials should suffice.
Just Sold cards are a great way to pique the interest of prospects. Just double check your cards before they go to print and before they are mailed to make sure they are in compliance with the Code of Ethics and your MLS rules.
Anne Cockayne is Director of Policy Services for Florida Realtors.
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