4 Legal Issues With Real Estate Advertising To Be Aware Of

Due to the legal implications in the advertising of real estate, property owners, agents, and brokers need to tread carefully when they create ads. Real estate attorney services come in handy in a wide range of such situations. Here are 4 things a real estate attorney will tell you to be eagle-eyed about when you draw up a piece of advertising.

Making Disclosures

Nothing is as big of a source of potential problems with a real estate ad as much as the list of required disclosures. As a general rule of thumb, anything that might decrease the value of the property needs to be disclosed. Some of these issues are fairly self-evident, such as problems with the utilities, roof, or foundation.

Other problems, though, can seem a little odd. For example, courts have held that a reputation for a house having ghosts must be disclosed. Likewise, exposure risks must always be stated. These include things like histories involving meth labs, toxic waste, landfills, and other issues. Even if those things were in the distant past, you're probably going to have to disclose them.

Statement About Yourself

Suppose a broker bills their agency as the "#1 Seller in the Tri-State Area!" Legally, they had better be able to back that up with evidence. Many rules from the Federal Trade Commission and Consumer Financial Protection Bureau apply to the advertising of homes. If you don't have ironclad evidence to back up a claim, it's probably best not to include it in any ads.

Association Codes of Ethics

Joining an association means accepting the group's code of ethics. If you represent yourself in any way at all as a member of the association, that creates the impression with members of the public that you'll abide by the group's standards. Know the code of ethics and always make a good-faith effort to follow it. Failing to do so could provide an upset party with grounds to pursue action.

Clear Authority

Listing any property requires some concession from another party indicating you have the right to advertise it. While it can be tempting to list properties that you don't have such authority for to make the listing page on your website look better, don't do it. Bear in mind, though, that many popular systems in the industry allow you access to listings, such as the MLS, qualify as this sort of acceptable concession.

For more information about dos and don't for real estate advertising, contact real estate attorney services in your area.

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