Real Estate Advertising Guidelines

Washington State

Department of Licensing

dol.wa.gov

Real Estate Advertising

Guidelines

RE-620-400 (N/10/17)

Washington State Real Estate Advertising Guidelines i

Contents

Disclaimer ..............................................................ii

Introduction

Understanding the law related to real estate broker advertising is critical .........1

Where are the advertising laws and rules found? .............................2

Advertising Basics

What is advertising? .....................................................3

Advertising requirements .................................................3

Must include licensed name of ﬁrm ........................................3

Assumed name licenses ..................................................4

Inclusion of name in social media and on-line advertising ......................5

Advertising shall not be false, deceptive or misleading ........................5

Examples of false, deceptive, or misleading advertising ........................6

Consider the duration of an advertisement ...................................8

Implied endorsements are prohibited .......................................9

Avoid bait and switch .....................................................9

Fair Housing ...........................................................11

Speciﬁc Advertising Issues

Teams/Branding ........................................................12

Commission policies ....................................................13

Performance guarantees .................................................13

Stated experience .......................................................13

Material representations and veriﬁable statements ...........................14

Comparative statements in advertising .....................................15

Achievement awards/association memberships ..............................15

Professional designations ................................................16

Years of experience .....................................................16

Advertised inducement or referral fees .....................................16

Seller advertising .......................................................18

Guidelines for advertising listings online ...................................18

Domain names, email addresses, meta tags and descriptions ..................19

Links, deep links and frames .............................................21

ii Washington State Real Estate Advertising Guidelines

e Department of Licensing and the Washington State Real Estate Commission would like to thank the Real

Estate Council of Alberta, Canada for their contributions to the development of the Washington State Real

Estate Commission Advertising Guidelines.

ese guidelines are for real estate industry professionals licensed by the Washington State Department of

Licensing (DOL).

Disclaimer

ese are guidelines only. is guide does not include every possible advertising situation and it is not legal advice.

Please review the appropriate legislation concerning advertising as an industry professional in Washington State

before proceeding with any advertising. is includes, but is not limited to, the Real Estate Licensing Law (RCW

18.85), the Real Estate Brokerage Relationships (“Agency”) Act (RCW 18.86), the Uniform Regulation of Business

and Professions Act (RCW 18.235), and the Washington Administrative Code (WAC 308-124 through 308-124I).

DOL may periodically update this guide. To obtain the current version, please visit the DOL website:

www.dol.wa.gov.

Industry professionals are encouraged to share these guidelines with third-party service providers who assist

them in their advertising and marketing.

We are committed to providing equal access to our services.

For information visit dol.wa.gov/access (TDD/TTY call 711).

Washington State Real Estate Advertising Guidelines 1

e requirements of lawful advertising obligate

and regulate every real estate licensee, regardless of

the license that is held. Brokers, managing brokers,

licensed assistants and rms are all accountable

for compliance with advertising requirements.

erefore, it is critical that all licensees understand

the requirements of lawful advertising within the

real estate industry. is guide will provide the

fundamental advertising requirements for real estate

professionals in Washington State.

Before getting to that, however, it is important

for all licensees to know how and to whom they

are accountable for compliance with advertising

requirements.

A designated broker is responsible for all real estate

brokerage services provided by any person licensed

to the designated broker’s rm. A branch manager

is responsible for all licensed conduct provided by

any licensee operating under the branch manager.

is is not a passive responsibility. e Licensing

Law requires designated brokers and managing

brokers and branch managers who are given

management authority, to actively “supervise” the

conduct of licensees.

With respect to advertising, this means that

designated brokers and branch managers should

establish a policy and training system within

the rm or branch that ensures compliance with

Introduction

Understanding the law related to real estate broker advertising is critical

o matter what role you play in the real estate industry, advertising is critical to your success!

Advertising can be fun and creative and it WILL make the dierence between a professional who

builds a business portfolio and achieves results in moving property for sellers from an industry

professional who just gets by. Advertising is an unavoidable and substantial component of the real estate

brokerage industry, provided by all successful real estate rms, brokers and managing brokers.

2 Washington State Real Estate Advertising Guidelines

advertising requirements. DOL will not dictate what

a rm or branch must do to ensure compliance.

DOL recognizes and respects the autonomy and

professionalism inherent in the status of designated

broker and branch manager. is publication will

synthesize advertising requirements. It is up to

the professionals charged with supervision and

responsibility to create mechanisms that ensure

compliance.

With that said, one of the easiest ways for rms

to help ensure that their licensed professionals

comply with advertising requirements is to have

a rm policy and training program that includes

information about advertising. DOL expects rms to

exercise robust oversight of all licensee advertising.

If a real estate licensee uses advertising that is false,

deceptive or misleading, DOL may sanction that

industry professional and their rm.

Managing Brokers, Brokers, and Licensed

Assistants are responsible for personal compliance

with all advertising laws and rules and rm policies.

Where are the advertising laws and

rules found?

Numerous laws and rules in Washington State and

the United States regulate, in one way or another, the

rules and requirements associated with real estate

brokerage advertising. In Washington, the Real

Estate Licensing Law (RCW 18.85), the Real Estate

Brokerage Relationships (“Agency”) Act (RCW 18.86)

and the Washington Administrative Code (WAC 308-

124 through 308-124I) address real estate brokerage

advertising. Additionally, the Uniform Regulation

of Business and Professions Act (RCW 18.235), the

Consumer Protection Act (RCW 19.86.020) and

the Washington Fair Housing law (RCW 49.60.222)

regulate real estate advertising in some respect.

Washington law obligates DOL to require industry

professionals to comply with the advertising

laws and rules identied above. If an industry

professional fails to comply with laws or rules,

consequences can include an advisory letter, letter

of reprimand, administrative penalty for minor

infractions, or referral for criminal or civil charges

for major violations. In addition, every industry

professional is subject to civil liability if a consumer

is damaged by a licensee’s failure to comply with

advertising requirements. Defense of a claim for civil

liability consumes the time and resources necessary

for adjudication through a lawsuit. Ensuring that

advertising complies with rules and laws protects the

professional as an individual, protects the reputation

of each rm, protects consumers and protects the

image of the industry.

Washington State Real Estate Advertising Guidelines 3

Advertising Basics

What is advertising?

dvertising includes any activity, public notice, or representation an industry professional makes or

that someone makes on their behalf to promote the industry professional, their services, or the real

property the professional is promoting.

Examples of advertising include but are not limited

to:

• ALL printed material (circulars, pamphlets,

newspapers, magazines, brochures, hand-outs,

yers, etc.)

• Websites, including websites controlled by the

licensee as well as websites that licensee does not

control, but on which licensee’s advertising is

found

• Social media accounts and proles used to

advertise the licensee’s business or market real

property

• All promotional events, including open houses

• Billboards, television and radio commercials

• Signs (yard signs, sandwich board signs,

directional signs, etc.)

• Business cards, letterhead, fax cover sheets,

e-mails, text messages, and other promotional

materials

Advertising requirements

When you may advertise real property

Industry professionals may only advertise properties

for sale or lease, or properties that have been sold

or leased, when they have written authorization

from the owner or the owner’s lawful representative.

is means industry professionals cannot place

signs or other advertising that designate property as

being on the market, such as “for sale,” “sold,” “for

rent,” “will develop to suit,” etc., without the written

consent of the owner of that property or the owner’s

authorized representative. Membership in a multiple

listing service may grant some authority for sharing

and promotion of property information but it is a

licensee’s responsibility to ensure they have sucient

authorization for any advertising of property owned

by another. In addition, the licensee should ensure

compliance with any applicable multiple listing

service rules.

Must include licensed name of ﬁrm

All advertising of professional services and any

marketing of a client’s property, without exception,

must include the rm’s licensed name. e rm’s

name must be included, in a clear and conspicuous

manner. “Clear and conspicuous” in an advertising

statement means the representation or term being

used is of such a color, contrast, size, or audibility.

is means that the rm name must be presented

in a manner so as to be readily noticed and

understood. Said dierently, a reasonable consumer

4 Washington State Real Estate Advertising Guidelines

should be able to identify the rm based only on

the advertisement. Licensees advertising their

personally owned real property must only disclose

that they hold a real estate license.

• Industry professionals must clearly indicate the

name of their rm, as it appears on the rm’s

license, in all advertising. It is not sucient to

advertise only the franchise name if the rm’s

licensed name, includes additional words. For

example, rm’s licensed name is “Big Franchise/

South Sound”. All advertisements must include

“Big Franchise/South Sound.” It would be

unlawful to include only “Big Franchise” or

“South Sound.”

• e licensed rm name is the name that

appears on the rm’s license. If the rm applied

and received a DBA (doing business as), the

DBA name must be clearly and conspicuously

identied in all forms of advertising.

• e rm name cannot be abbreviated or

include abbreviations in advertisements if those

abbreviations are not commonly understood. For

example, if the name of the brokerage contains

the words “Real Estate,” industry professionals

cannot use “R.E” as an abbreviation. If the name

includes “Realty,” use of “Rlty” is not appropriate.

Commonly understood abbreviations, such as

“Inc.” or “Corp.” may be used. If the rm license

has the abbreviations, then those abbreviations

can be used.

• Including a rm logo or website address does not

qualify as including the rm’s licensed name.

• e advertised rm name can be an “assumed

name” so long as the rm holds an “assumed

name” license for the rm name. For more

information, see the section below entitled

“Assumed Name Licenses”.

Assumed name licenses

Firms may obtain, from DOL, an assumed name

license. e assumed name license may be the rm’s

DBA or it may be the name of a team of broker’s

licensed to the rm. ere is no limit on the number

of assumed name licenses a rm may obtain. e

assumed name license is owned by the rm. e

obligation to include the rm’s licensed name, on all

advertising, is satised by use of any assumed name

duly licensed to the rm.

DOL may deny, suspend, or reject an assumed

name license application that, in DOL’s opinion, is

derogatory, similar to another licensed rm name,

implies that the rm is a government agency, or that

the rm is a non-prot or research organization.

A bona de franchisee may be licensed using the

name of the franchisor with the rm name of the

franchisee.

An industry professional may use the assumed

name in advertising, or use both the complete rm

name and assumed name as licensed. It is unlawful,

however, to use only part of either the rm name or

the assumed name. For example, the rm’s originally

licensed name is “Big Franchise/South Sound.” e

rm’s assumed name license is “Team Terric.”

Advertising can include either licensed name

without the other, but advertising could not include,

for example, “Big Franchise/Team Terric”.

Washington State Real Estate Advertising Guidelines 5

Inclusion of name in social media and

on-line advertising

All Internet related advertising that consumers can

view or experience, as a separate unit, (for example,

email messages or web pages) require disclosure

of the rm’s name as licensed and disclosure of the

broker’s or managing broker’s name, as licensed. Once

an agency relationship has been established with a

buyer or seller, the disclosure of licensed rm and

broker name is no longer required in this medium.

Whenever a licensee owns a website or controls

its content, every viewable page should include

disclosure of the rm’s and the broker’s or managing

broker’s licensed name. (A “viewable page” is one

that may or may not scroll beyond the borders of

the screen and includes the use of framed pages.)

When using such formats as newsgroups, discussion

lists or bulletin boards, licensee should include

disclosure of the rm’s and the broker’s or managing

broker’s licensed name at the beginning or end of

each message. When using social media, disclosure

of the rm’s and the broker’s or managing broker’s

licensed name should be prominently displayed

and easily understood and be no more than one

click away from the viewable page. Multimedia

advertising (e.g. web based, executable e-mail

attachments, etc.) and banner ads should disclose

the rm’s and the broker’s or managing broker’s

licensed name and/or should link to a webpage that

has full disclosure that is a single click away from

the viewable page.

Advertising shall not be false,

deceptive or misleading

Industry professionals shall make no statements

known to be false, deceptive or misleading in any

of licensee’s advertising. Moreover, licensees are

not shielded from responsibility for making a false

statement because licensee was unaware of the

falsity if, by reasonable care or inquiry, licensee

could have learned of the falsity. In other words, it

is not a defense for a licensee to claim ignorance

of falsity if, through reasonable care and inquiry,

broker could have discovered the truth.

To determine if advertising is false, deceptive or

misleading, DOL considers the literal meaning of

the advertisement and the general impression it

creates. Truth in advertising goes beyond simple

truthfulness; advertising must not mislead or be

capable of misleading a reasonable consumer.

When an industry professional makes claims in an

advertisement, information substantiating those

claims should be readily available to consumers

from the rm upon request. Claims may include

the rm’s or an individual professional’s guarantee,

performance, accomplishments, service levels, etc.

or it may include a representation regarding the

condition of seller’s property. A broker is entitled

to rely on the representations of a seller regarding

seller’s property and thus, it is always a good idea for

a rm to retain proof in its transaction le that seller

reviewed and approved all representations regarding

the condition of seller’s property.

Advertising can be false, deceptive or misleading

even if there is no proof a consumer was misled.

DOL must show only that the advertisement is

capable of misleading a reasonable consumer.

Carelessness, negligence, incompetence, and

recklessness can result in false, deceptive or

misleading advertising, as can intentional

misrepresentations (intentionally untrue

statements). Licensees are equally responsible in

both cases.

6 Washington State Real Estate Advertising Guidelines

Examples of false, deceptive, or misleading advertising

A. Business cards are misleading if industry

professionals hold themselves out as

specialists in a given area when they do not

have the necessary education or experience

to advertise such a specialty. If broker’s

business card includes the statement “VA loan

specialist,” broker should have specialized

training and/or signiﬁcant experience

successfully assisting VA buyers with the

purchase of property. If broker’s business

card says “condo specialist,” broker should

have specialized training and/or signiﬁcant

experience in condominium transactions.

B. Advertising is false if broker makes a

deliberate misrepresentation with the intention

of enticing a party to act such as advertising

that broker’s commission will be “the rate

established by law.” Because it is untrue

that any commission rate is established by

law, it is false advertising for broker to state

the commission charged by the broker is

established by law. There is nothing unlawful

associated with a licensee advertising the rate

of commission charged by the licensee, but it

is unlawful for broker to state or imply that the

commission rate is established by law, rule or

industry standard.

ABC

Realty

Jennifer Wilson

“VA LOAN SPECIALIST”

jennifer@abcrealty.com • (360) 555-1212

ABC

Realty

Jennifer Wilson

jennifer@abcrealty.com • (360) 555-1212

Low commissions always!

Our commissions are based only

on the limits allowed by law.

Washington State Real Estate Advertising Guidelines 7

C. Advertising for property is deceptive if it

says that the property is buffered by a “green

belt” when broker knows that the trees,

described as a “green belt,” are scheduled

for removal as part of a construction project.

Use of the term “green belt” is intended to

create the impression in a consumer’s mind,

that the trees are protected from being cut.

Even though a broker could argue that they

intended nothing more than to illustrate that

the green trees were present and “belted” the

property when buyer viewed the property, it is

clear that use of the term “green belt” would

deceive the average consumer into believing

that the trees were protected and would

remain in place long-term.

D. Buyer’s broker attaches a home inspector’s

report to an email sent to seller’s broker. The

inspector’s report describes the condition

of seller’s property, including a roof vent

leak that has resulted in mold infested attic

insulation and rotten trusses, notwithstanding

that the roof is relatively new. Buyer does

not purchase the property. Seller’s broker

chooses not to open the attached inspector’s

report and says, when advertising the

property, “nearly new roof in great condition”.

Broker’s advertisement is false, deceptive and

misleading because, with reasonable care and

inquiry, broker should have learned the truth

regarding the condition of seller’s roof. Broker

is not permitted to make a false statement

because broker chose to avoid knowledge of

the truth.

$450,000

Gorgeous contemporary home

is four bedroom, three bath home

borders a green belt and features modern

amenities, including an open concept with

a gourmet kitchen, large master bedroom

and bathroom with jetted tub and so much

more!

$475,000

Modern Craftsman

Looking for a classic modern look? is

home has it all. Beautiful exterior features

and landscaping. e nearly new roof is in

great condition.

Leaking vent discovered

during inspection

and not disclosed in

subsequent statements

or advertisements.

8 Washington State Real Estate Advertising Guidelines

Consider the duration of an advertisement

Industry professionals may avoid problems associated with false, deceptive and misleading advertisements by

considering the duration of the intended advertisement. Advertisements in circulation for long periods of time,

such as rm signage, business cards and listings that are launched into on-line, secondary marketing sources

present special problems for industry professionals. e problem is the facts that support the claims in the

advertising may change while the advertisement is still active. Industry professionals should consider whether

statements made in the advertisement are likely to change. If so, licensee must have a plan for monitoring the

advertisement and removing or modifying the advertisement should the facts supporting the advertisement

change. When the facts supporting an advertisement change, the industry professional must make immediate

corrections to the advertisement or delete the advertisement in order to avoid false, deceptive and misleading

advertising.

ABC

Realty

Riley Owens

Most Listings in the MLS!

riley@abcrealty.com • (360) 555-1212

B. Broker’s business card claims “Most Listings

in the MLS”. Broker did, in fact, have more

listings than any other broker in the MLS at the

time the business card was printed. However,

the MLS report generated in the subsequent

reporting period showed that broker no longer

occupied that status. Broker must change

the statement on the business card to avoid

making a false, deceptive or misleading

statement.

Examples

A. Firm’s licensed name is ABC Realty. Firm purchases signage for the front of the ofﬁce advertising ABC

REALTY. Firm’s owner then takes a partner and they change the licensed name to ABC/Smith Realty. The

signage on the ﬁrm must change to reﬂect the newly licensed name of the ﬁrm.

ABC/Smith

Realty

ABC

Realty

Washington State Real Estate Advertising Guidelines 9

C. A listing placed in the MLS is advertised

through secondary marketing sources. The

listing expires and is not renewed. Seller takes

the property off the market. The listing remains

in the secondary marketing sources. Broker

must take every reasonable step to remove

seller’s listing from the secondary marketing

sources.

Implied endorsements are prohibited

Industry professionals must avoid giving the

impression that someone or some entity endorses

the professional unless there is written conrmation

of the endorsement. Using information that

implies an endorsement without actually stating

that a certain individual or organization endorses

the business or professional could also result in a

misrepresentation. Licensees should be certain to

use only logos they have permission to use. Using a

logo other than one’s own could be an improperly

implied endorsement, in addition to potential

Example

Broker is a huge fan and season ticket holder of the

local, professional football team. Based on broker’s

fond affection for the team, broker includes the

team’s logo on all of broker’s advertising. Use of the

football team’s logo creates the impression that the

football team endorses broker’s business. For broker

to create that impression in broker’s advertising,

broker must be able to provide a copy of the football

team’s written endorsement. If there is no written

endorsement from the football team, the team’s logo

must be removed from broker’s advertising.

Avoid bait and switch

(Use of “Restrictions” or “terms and conditions

apply” does not make a false representation true).

In promoting their business model, licensees

will oen oer incentives for consumers to hire

the licensee. e incentive oen creates a catchy

headline, but if the headline does not match the

program that is oered, then the advertisement is

false, deceptive or misleading. Aer the consumer

has agreed to hire the professional, the contract used

by the professional must present contract terms

that mirror the advertised incentive. Use of the

statement “terms and conditions apply” means that

the terms and conditions will not materially alter the

substance of the oer. If the terms and conditions

materially alter the program from the description

in the headline, that is considered “bait and switch”

and is unlawful. Details of all restrictions or terms

and conditions must be available to consumers

before the consumer is asked to sign a contract.

$450,000

Gorgeous contemporary home

is four bedroom, three bath home

borders a green belt and features modern

amenities, including an open concept with

a gourmet kitchen, large master bedroom

and bathroom with jetted tub and so much

more!

10 Washington State Real Estate Advertising Guidelines

Examples

A. Broker advertises “Sell Your Home in Thirty

Days or Broker will Buy.” Seller hires broker,

seller signs broker’s contract and listing

agreement. Seller’s home does not sell in

thirty days and seller asks broker to purchase

the property. Broker presents a purchase

agreement for seller’s property with a

purchase price that is 50% of the market value

of seller’s property. Seller objects and broker

points to the language in broker’s contract

indicating that broker will only pay 50% of the

value of seller’s property. Broker engaged in

unlawful “bait and switch.”

B. Broker advertises “Buy a home from me and I

will give you a Caribbean Cruise.” Buyer buys

and seeks information regarding the cruise.

Broker responds that the promotion was only

available to buyers who purchased a home

in excess of one million dollars, which buyer

did not do. Those program details were never

given to buyer. Broker engaged in deceptive

advertising without fully informing consumer

of the limitations prior to consumer’s

agreement to utilize broker’s services.

ABC

Realty

Susan Mendoza

susan@abcrealty.com

(360) 555-1212

Sell your home in

30 days or I will buy it!

ABC

Realty

Riley Owens • riley@abcrealty.com

(360) 555-1212

Free Caribbean Cruise!

Buy a home

from me and

I will give you

a Caribbean

Cruise!

Washington State Real Estate Advertising Guidelines 11

It should be further noted that if the program

details include reference to industry terminology

or abbreviations, those must be explained

suciently for a consumer to understand the

reference. For example, if an incentive is oered

only in transactions where there is a “3% BAC”

or a “3% SOC,” broker will have to prove that the

consumer understood the meaning of that reference

and understood that a buyer has no control over

what the “buyer agent commission” or “selling

oce commission” is, because those are typically

negotiated between seller and listing rm before

buyer is introduced to the property.

Licensees must avoid using, in all advertising,

photographs, images, text, graphs, illustrations and

other content that broker does not own or have a

license to use. If broker did not take the photograph

or create the other representations set forth in

advertising, then broker does not have authority

to include them in advertising unless broker has

obtained specic permission from the photographer,

author, creator, etc. Unauthorized use of another

person’s creative work may result in a civil damages

claim.

Fair Housing

It is unlawful for a licensee to discriminate against

any person, in the sale or leasing of real property,

based on the person’s race, color, national origin,

religion, disability, sex, familial status, creed, marital

status, sexual orientation, gender identity, HIV/

AIDS and hepatitis C status and veteran/military

status. ere are additional classes protected by local

ordinances. Fair Housing laws impact advertising by

industry professionals. Generally, when advertising

a property for sale, licensee should market and

describe the features of the property and not the

buyer or the tenant who is sought for the property.

When marketing services, the industry professional’s

advertising should present no limitations on the

consumer who is sought and, moreover, the industry

professional must be prepared to reasonably

accommodate any consumer who seeks the

advertised services of the industry professional.

12 Washington State Real Estate Advertising Guidelines

Teams/Branding

Teams are not rms, but they sometimes create their

own administration that, in some ways, mimics

the appearance of a rm in order to attract, retain,

and service clients. e team concept can lead to

confusion with respect to advertising. Advertising

a team name or a “brand” must be consistent

with all rules of advertising previously discussed.

Additionally, the advertising cannot include wording

that suggests a legal entity separate from the real

estate rm, such as “Inc.,” “LLC,” or “Corp.” or that

is commonly understood to reference an entire rm

or oce, such as “realty,” “realtors,” “rm,” or “real

estate.”

• All advertising must include the rm’s name or

the rm’s DBA or assumed name as licensed.

• If the team name is licensed as one of the rm’s

assumed names, then the team may advertise in

the licensed assumed name/team name, in the

absence of any other licensed rm name.

• If the team name is not a licensed assumed name,

then all team advertising must include the rm’s

licensed name in a clear and conspicuous manner,

meaning that a reasonable consumer should be

able to clearly identify the licensed rm based

only on the advertisement.

• Teams should be aware that when a rm obtains

an assumed name license in the team’s name, the

rm owns the name and the license and the rm

is not required to surrender ownership of the

name or the license for so long as the rm renews

the assumed name license.

To advertise that a potential client will be hiring

an entire “team” may be misleading. It must be

remembered that based on the Agency Law, RCW

18.86.020, the only team member(s) who represent

a seller are the team member(s) who have been

appointed as an agent or sub agent of the seller.

Example

Team Terriﬁc consists of four members. One team

member obtains a listing and is the only broker

identiﬁed on the listing agreement as the listing

agent. As a result, the only licensees who represent

seller are the listing agent and the listing agent’s

managing broker(s). Other team members involved

in the sale of the seller’s property may represent the

buyer.

Teams must also be careful not to create false

impressions in an eort to bolster team statistics.

It is not acceptable, for example, for a single team

member to be identied on all purchase agreements

as the broker representing a party or to be identied

in the MLS as the agent who represented all clients

of the team unless that team member did actually

represent all clients of the team.

Example

Team Terriﬁc has four members, one of whom is

the team leader, Beth. Fred, a member of the team,

meets and works with a buyer, writes an offer and

shepherds the transaction through to closing. Fred is

the only team member who worked with the buyers.

It would be unlawful for Beth to include her name

on the purchase agreement or in the MLS as buyer’s

agent. Beth may be Fred’s delegated managing broker

and if so, can be disclosed as such. But, it would be

misleading for Beth to be identiﬁed as buyer’s agent

if Beth never worked with the buyer.

Speciﬁc Advertising Issues

Washington State Real Estate Advertising Guidelines 13

Commission policies

Some rms may have a policy with respect to

the amount of commissions it charges clients.

Industry professionals must not advertise that

commission rates are somehow “set” or regulated

by a higher authority, such as a governing body or

trade association. Commission rates are negotiable

between a rm and a client, and to say otherwise is

false and misleading. e industry professional is

the rm’s representative in those negotiations.

A rm may be unwilling to negotiate commission,

but the client must understand that is a rm policy.

Industry professionals cannot give clients the

impression that all rms charge the same, non-

negotiable commission.

in writing, then the guarantee created by the

advertised statement will constitute the totality

of the guarantee. DOL encourages rms to put

all performance guarantees in writing. If there is

a link between the performance guarantee and

an evaluation of the property’s market value, the

valuation must reect the reality of the market. e

industry professional should keep the information

for the basis of the property’s valuation in the

transaction le.

Stated experience

Industry professionals oen advertise special

qualications, experience, or expertise in specic

industry sectors, or in certain geographic areas.

Professionals make these representations for the

purpose of enticing consumers to do business

with the professional, in reliance on this special

qualication. When making these claims, industry

professionals must ensure they are in a position to

demonstrate the related qualication or experience

they claim. If an industry professional advertises

special qualications or expertise, the consumer

and DOL expect them to perform at that level, and

if not, the advertisement could be considered false,

deceptive or misleading.

A person holding a managing broker’s license

may advertise “managing broker” even though the

advertiser does not manage any other brokers. e

description “managing broker” refers to a category

of license held denoting additional training and

experience. Similarly, a person claiming a title

from another industry, such as military, union

membership, athletics, and others, may claim the

title earned in that industry, but if the title was

previously earned and not currently held, then the

advertisement should make that clear. For example,

“Major, US Army, retired” or “Former Superior

Court Judge” both indicate the status achieved by

the advertiser and put the consumer on notice that it

was a formerly held, but no longer current.

Performance guarantees

A rm, through its industry professionals, may

wish to oer a performance guarantee, such as a

commission reduction if the property fails to sell by

a specic date. Firms may advertise performance

guarantees as long as the advertisements are not

false or misleading. Firms are not required to

include full particulars of the guarantee in the

advertisement, so long as the advertisement and

the written guarantee are materially consistent

and so long as the actual guarantee is available to

consumers before the consumer is asked to enter

an agency agreement based on the guarantee.

If rm fails to put the performance guarantee

14 Washington State Real Estate Advertising Guidelines

Material representations and

veriﬁable statements

Statements such as “We sell every home we list

in 60 days or less!” is a material representation

intended to induce a consumer to select this

specic professional. DOL does not prohibit

such statements, but upon receipt of a complaint,

will hold the advertiser accountable to prove

the claims are accurate. Advertisements that are

accurate when created, but that become inaccurate

with the passage of time, must be withdrawn or

modied. It is not a defense against disciplinary

action for an advertiser to claim the statement was

true when made but became false by the time the

consumer relied on it. If an industry professional

knowingly makes or sustains a false claim about

their credentials or abilities for the purpose of

inducing a consumer to do business, that is known

as “fraudulent inducement.” It is unlawful and will

likely be sanctioned by DOL. Moreover, it exposes

the licensee to a civil claim by the consumer.

Making statements along the lines of “#1 industry

professional” is inherently false, deceptive and

misleading because there is no way of knowing

the basis or data that could support the statement.

If a licensee intends to use such a statement in

advertising, the licensee must include enough

information in the advertisement to avoid

deceiving or misleading the public. A veriable

and quantiable identication statement in any

advertising must provide enough information so

that a reasonable member of the public discerns the

true meaning of the message.

If broker advertises that the broker “Sold 400 Homes

Last Year,” broker must be able to prove that broker,

personally, was the broker who sold 400 homes last

year. is advertisement would be false, deceptive

and misleading if broker was merely licensed to a

rm that sold 400 homes last year or if broker was

part of a team that sold 400 homes last year. e

rm or the team could make the representation

but it would be unlawful for broker to claim that

statistic in a personal advertisement when broker

did not personally earn the statistic. Team leaders

falsely advertise their accomplishments when they

personally claim all the transactions handled by

other team members if the team leader was not

the professional who actually provided brokerage

services to the consumer. It would be appropriate

for the team to make claims based on team statistics

and data but it is false, deceptive and misleading for

an individual team member, even the team leader, to

personally claim the accomplishments of the team.

Industry professionals must:

• be able to support and prove claims asserted in

advertising using current facts and/or data

• update and refresh advertising so that stated

claims remain accurate as facts, statistics and data

evolve

An industry professional who wants to refer to him

or herself as “#1” needs to include more information

in the ad —such as information about the market

in which the professional is #1 and information

about what makes the industry professional #1 (i.e.

most homes sold, most homes listed, most money

made). e advertisement also needs to include a

timeframe.

Washington State Real Estate Advertising Guidelines 15

Comparative statements

in advertising

Advertising that compares the industry professional

to competitors or other industry professionals

is lawful if, as with all advertising, it is accurate.

Industry professionals who use comparative

advertising must:

• present measurable facts and gures in a clear,

straightforward way

• disclose the source of facts and gures they

include

• take no facts or gures out of context

• be able to prove the truth of comparative

statements upon request by a consumer or DOL.

A statement like “Team Terric will get more for

your listing than any other broker” is inherently

false, deceptive and misleading because there is no

way of proving the truth of the statement. ere is

no comparison showing the sales price achieved

by Team Terric on specic properties as opposed

to the sales price achieved by another professional

for the same properties in the same market. is

statistic is impossible to determine because real

estate can only be sold by one professional in

the market that existed at the precise time of the

sale. is is dierent from commodity sales. For

example, an auto dealer, who sells exactly the same

cars at exactly the same time as competitors, could

potentially support a claim such as this. Because

all real estate is unique, a claim such as this cannot

be supported and is, therefore, false, deceptive and

misleading.

If Team Terric says “Team Terric closed more

sales in 2016 than any other member of the Clark

County Association of REALTORS” that is a

statement with enough specicity that it can be

proven.

Achievement awards/association

memberships

Many rms, franchises, and industry associations

have a system of awards to recognize professional

achievements. ese awards may recognize sales

achievements, service to the industry, service to

the community, or years of industry or association

aliation. Examples of these awards include

language such as “President’s Club,” “100% Club,”

“Million Dollar Club,” “REALTOR® of the Year” and

“Top Producer Award.” e rules for granting these

awards may vary greatly between each brokerage, as

well as between associations.

DOL accepts that industry professionals may receive

this type of recognition and does not prohibit

industry professionals from including these awards

in advertising. Industry professionals who include

awards in their advertising must be able to provide

verication of the achievement of the award. As

with all advertising, industry professionals must be

certain that claimed “awards” are current or that the

claim indicates past accomplishment. For example,

if the award was for a specic time period, such as

the year 2013, then today’s advertisement should say,

“2013 Franchise Top Producer”.

Additionally, it is unlawful for an industry

professional to falsely claim membership in

an association or to wrongfully use the logo

or trademarks of an association to create the

impression that licensee is a member of an

association. e term “REALTOR” and the capital

“R” logo associated with the National Association of

REALTORS are both registered trademarks. Use of

those trademarks in advertising by non-members is

not only a potential violation of the trademarks, it is

also false, deceptive and misleading.

16 Washington State Real Estate Advertising Guidelines

Professional designations

An industry professional who is a licensed

professional in another profession, such as

an engineer or lawyer, may include it in their

advertising as long as they are a member in good

standing and/or remain licensed. Likewise, real

estate professionals may hold a professional

designation or certication given to them through

a professional or industry association, and they

can include those in advertising as long as they are

current.

Years of experience

Industry professionals may want to indicate the

number of years of experience they have working

in real estate, but any such statement must clearly

indicate the actual experience gained in those

years. For example, ve years of experience as an

unlicensed assistant in a real estate oce plus ve

years of experience as a licensed real estate broker

does not equal 10 years of experience as a broker.

Broker may be able to advertise that broker has 10

years of experience working in the industry but

broker’s advertising is deceptive if it creates the

impression, in the mind of a reasonable consumer,

that broker has held a real estate broker’s license for

10 years.

Advertised inducement or referral fees

It is lawful for an industry professional to advertise

that they will give any or all of their compensation to

either party in the transaction. Rebating commission

back to one of the parties, either in the form of cash

or a gi, is nothing more than a reduction in the

compensation charged to a consumer and industry

professionals are free to reduce their compensation.

Any reduction by a broker or managing broker,

however, must be approved by the rm before the

advertising statement is made. All compensation

for real estate brokerage services is payable only to

a rm, so it would be false, deceptive or misleading

for a broker or managing broker to advertise a

return of commission to a consumer if the broker

or managing broker did not have permission of the

rm to give away compensation belonging to the

rm. In addition, if funds or a gi are being given

to a buyer who is obtaining nancing, then buyer’s

lender must be made aware of the commission

rebate or gi. Some lenders have regulations

restricting payment of money or gis to a buyer.

Advertising a return of money or gis to a client or

other party in the transaction is very dierent from

advertising a willingness to pay a referral fee to an

unlicensed, third party who refers a buyer or seller

to an industry professional. With respect to payment

of referral fees to unlicensed people who are not

parties to the transaction, the question is more

complicated. e License Law, RCW 18.85, says

that a real estate licensee may pay a referral fee to a

third party, unlicensed person, so long as payment

of the referral fee is not contingent upon receipt of

compensation by the licensee or the real estate rm.

ere is no dollar limit on the referral fee that may

be paid. Advertising the referral fee is lawful so long

as the advertisement, and subsequent payment,

create no contingency on a successful closing.

RESPA, a federal law (“Real Estate Settlement

Procedures Act”), indicates that any payment made

in direct exchange for a referral, is prohibited.

RESPA prohibits settlement service providers from

giving or receiving anything of value in exchange for

a referral. “Settlement service provider” is a broadly

dened term which could include unlicensed,

non-professional individuals. HUD, the federal

agency charged with enforcement of REPSA, has

not indicated whether RESPA prohibits payment of

referral fees to unlicensed, non-professional people.

Washington State Real Estate Advertising Guidelines 17

Examples

A. Broker advertises that she will pay $1,000 of

her commission toward buyer’s closing costs

as an inducement to attract buyer clients. The

advertisement is lawful so long as: 1) broker’s

ﬁrm approved the advertised payment from

the ﬁrm’s commission; 2) buyer is made aware

that buyer’s acceptance of the inducement

is dependent on buyer’s lender’s approval

of broker’s contribution toward payment of

buyer’s closing costs; and 3) broker actually

contributes the promised funds toward

payment of buyer’s closing costs, assuming

such payment is authorized by buyer’s lender.

ABC

Realty

Jennifer Wilson

jennifer@abcrealty.com

(360) 555-1212

I will pay $1,000

towards your closing!

ABC

Realty

Susan Mendoza • susan@abcrealty.com • (360) 555-1212

FREE $500

Gift Card!

Refer a buyer or seller

to me after you close

and get a free gift card!

ABC

Realty

Susan Mendoza • susan@abcrealty.com • (360) 555-1212

FREE $50

Gift Card!

Refer a buyer or seller

to me and get a free

gift card!

B. Broker advertises that he will give a $500 gift

card, after closing, to any person who refers

a buyer or seller to him. This advertisement is

unlawful because it makes the obligation to give

the gift card to an unlicensed person contingent

on the broker’s receipt of compensation from

the referral.

C. Broker advertises that she will give a $50 gift

card to any person, if and as soon as they

refer a potential buyer or seller to her. This

advertisement is lawful under Washington

law because the promise of the gift to

an unlicensed person is not contingent

upon broker’s receipt of compensation.

Depending on how HUD interprets RESPA,

the advertisement may violate RESPA.

18 Washington State Real Estate Advertising Guidelines

D. Broker is a member of a children’s hospital

charity board and offers to make a $5,000

donation, at closing, to the charity, in the name

of any other member who buys or sells from

broker. This advertisement is lawful, so long

as broker’s ﬁrm has approved the payment,

even though the funds are going to a third

party and are contingent upon a successful

closing. Because the charitable funds are

donated in the name of one of the parties

to the transaction, that is tantamount to the

broker giving the funds to the party, who in

turn, donates the funds to the charity. So long

as broker makes the promised donation, this

advertisement is lawful.

Seller advertising

DOL does not regulate buyers or sellers. If sellers

want to advertise their own property, separate from

advertising oered by their listing rm, that is ne.

However, if sellers do their own advertising and

include the name of their real estate professional,

they must also include and clearly indicate the rm’s

name as licensed.

Guidelines for advertising listings

online

e primary issues associated with online listings

relate to keeping the online information current and

accurate with all marketing sources. Consumers

should be able to assume that information they nd

in an online listing is current and accurate. Online

listing information needs to be consistent with the

property description and actual status of the listing.

Real estate professionals must update material

changes to the listing status or property description

in a timely manner.

It can be dicult for a broker to eect changes in

on-line listings presented by secondary marketing

sources. To comply with licensee’s obligations for

truthful advertising, the licensee must be able to

demonstrate that licensee took all reasonable steps

to communicate with and persuade the secondary

marketing source to update the listing or transaction

information. Real estate professionals should also be

aware of the terms and conditions of any secondary

marketing sources, like the right of the secondary

marketing source to distribute the listing to third

party websites.

If real estate professionals want to display listing

information from other rms, they must have

an agreement with the other rm to do so. DOL

recommends that real estate professionals do not

display listing information from other rms unless

they can ensure current and accurate information.

Key points:

• Online listing information should be consistent

with the property description and actual status

of the listing. When a real estate professional

$5,000 donated to Children’s Hospital

in your name when you close with me!

ABC

Realty

Jennifer Wilson (360) 555-1212

Jennifer Wilson

Washington State Real Estate Advertising Guidelines 19

controls a website, they must make updates in a

timely manner if there are material changes to the

listing status or property description.

• When a real estate professional has a website

maintained by a third-party, the professional

needs to make sure they submit requests in

writing to that third-party in a timely manner if

there are updates reecting material changes to

the listing status or property description.

• When a real estate professional authorizes

advertisement of a listing by a secondary

marketing source, the professional must maintain

proof of all eorts to communicate with and to

persuade the secondary marketing source to

make necessary changes to the listing information

in a timely manner.

• As a best practice, real estate professionals should

not advertise listings from other rms without

written permission and, if given, should not alter

the online display or any informational part of the

listing without written permission from the listing

rm.

Domain names, email addresses,

meta tags and descriptions

A domain name is the Internet address of a website.

For example, the DOL domain name (website

address) is www.dol.wa.gov. Metatags are descriptive

words hidden in a web site’s code that search engines

use to index the web site. Most sites use common

words such as real estate, Washington, city names,

homes, houses, etc. ose uses are ne. But some

web site owners have also inserted their competitor’s

names into the metatags, so that when a potential

customer searches for their site, the competitor’s

site will also come up as a match. is should not

be done. Courts have ruled that this constitutes

trademark infringement. Domain names, email

address, and meta tags should not contain any

trademark that the industry professional is not

authorized to use.

Industry professionals must also avoid registering

and using domain names for their websites that

include the names of their competitors. For

example, if broker’s name is John Doe, it would

be inappropriate for broker to register under a

competitor’s name, such as www.BobSmith.com

Example: Twitter

In this tweet, the real estate

broker is advertising a listing, an

act that requires she disclose her

brokerage. As long as the link in

the tweet contains the necessary

brokerage disclosure, this tweet

is acceptable.

20 Washington State Real Estate Advertising Guidelines

Example A:

On this broker’s website,

her name and specialty is

prominent at the top, but the

brokerage company name

is not obvious. Brokerage

names must be clearly

displayed and prominent

on every page within the

website. See Example B.

Example B:

The brokerage name is

displayed prominently at the

top of each page correctly

and also shows the licensed

broker who represents the

properties.

Featured Listings

VIEW ALL

HOME MORE

FEATURED LISTINGS

SEARCH FOR HOMES

BUYER/SELLER INFO

ABC Realty

Bainbridge Island $595,000

Executive home with high end nishes.

Situated on 1.4 acres. Mature landscaping

and irrigation system.

Magnolia $895,000

Vintage home with high end nishes.

Situated on extra large city lot. Mature

landscaping with fruit trees.

ABC

Realty

Jennifer Wilson

jennifer@abcrealty.com • (360) 555-1212

Low commissions always!

Our commissions are based only

on the limits allowed by law.

Type a city, zip, address, or MLS#

Any

No min.

No Max.

Location:

Bedrooms

Bathrooms:

Min Price:

Max Price:

Featured Listings

Contact me about these

and other properties!

(800) 555-1212

jennifer@abcrealty.com

VIEW ALL

HOME MOREFEATURED LISTINGS SEARCH FOR HOMES

BUYER/SELLER INFO

Type a city, zip, address, or MLS#

Bainbridge Island $595,000

Executive home with high end nishes.

Situated on 1.4 acres. Mature landscaping

and irrigation system.

Magnolia $895,000

Vintage home with high end nishes.

Situated on extra large city lot. Mature

landscaping with fruit trees.

Any

No min.

No Max.

Location:

Bedrooms

Bathrooms:

Min Price:

Max Price:

ABC

Realty

Jennifer Wilson

jennifer@abcrealty.com • (360) 555-1212

Low commissions always!

Our commissions are based only

on the limits allowed by law.

Jennifer Wilson

Real Estate Specialist

Washington State Real Estate Advertising Guidelines 21

and then advertise services —or redirect Bob Smith’s

website visitors to John Doe’s website.

Industry professionals must not make

representations or carry on conduct that misleads

or deceives, or is likely to mislead or deceive,

consumers. Misleading meta tags or the use

of inappropriate domain names could mislead

consumers.

Links, deep links and frames

Links are either graphics or words on a webpage

that, when a user clicks on them, takes them to

another webpage, either within the same site or a

dierent website. Deep links are links that take a

user to a webpage other than the homepage of a

specic website.

Frames are a design element that are created when

one website captures information from another

website or webpage and displays it graphically

within the original window. A website is “framed” if

one web page appears to be a part of, or embedded

in, another page. A website designer may do this

to retain design elements and links within certain

frames on the website, even while the user changes

the information presented in another frame. Some

website designers also use frames to post content

from other websites, and embed that content

within their own website, such as outside mortgage

calculators or multiple listing service information.

Example: Facebook

Real estate professionals are encouraged to

set up a separate page for business use and

not use their own personal Facebook page.

Like all other advertising, the brokerage name

should be obvious to the user.

22 Washington State Real Estate Advertising Guidelines

Example: Instagram

In this Instagram ad, the broker has the space

to clearly indicate her brokerage. The character

limit on Instagram posts is 2,200 characters;

more than enough space to clearly indicate a

brokerage name within the ad copy.

ere are a number of issues relating to linking and

framing.

1. Regardless of which website hosts the listings of

a local multiple listing service, there are rights

of compilation in those databases. Industry

professionals must adhere to the guidelines

established by the relevant multiple listing

service for linking to that listing information.

2. Embedding content from another website

within a frame of an industry professional’s

website can lead to copyright and/or trademark

infringement. Licensee should have permission

from the website owner prior to framing.

3. Industry professionals must not misrepresent

the relationship between their services and the

services oered by a site to which their site links.

If the link creates the impression the industry

professional is participating in, or endorsing

the services the other side oers, the industry

professional may be assuming responsibility for

the performance of those services.

Washington State

Department of Licensing

dol.wa.gov

Real Estate Advertising

Guidelines

RE-620-400 (N/10/17)