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PO Box 1113 Duvall, WA 98019

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DOL Real Estate Commission issues guidelines for internet advertising and social media

Our friends at the Northwest MLS passed along some new guidelines from the Washington State’s Department of Licensing.  These guidelines cover internet advertising, email, and social media.  The full set of guidelines can be found here.

Its important as a consumer that you are familiar with these guidelines. Being familiar with them means you can more easily identify real estate companies that are acting legally and ethically.  If you find a company that doesn’t take the time to be familiar with the laws and guidance of DOL (or doesn’t follow them when they are familiar), you shouldask if yourself if they are willing to follow any of the other rules that protect you.

Here is the main set of guidelines:

Guidelines for on-line disclosure
All Internet related advertising that consumers can view or experience, as a separate unit, (for
example, email messages or Web pages) should require full disclosure. The burden of proof of
such full disclosures falls on the licensee, the firm, and designated broker (licensed entities) when
addressing a consumer complaint. This disclosure does not apply once an agency relationship has
been established with a buyer or seller. Examples of online communications are listed below:

  • The Web
    Whenever a licensed entity owns a website or controls its content, every viewable page
    should include full disclosure. (A “viewable page” is one that may or may not scroll
    beyond the borders of the screen and includes the use of framed pages.) If you give
    permission for a 3rd party to advertise your listings maintain regular and thorough
    oversight to ensure the information is correct. Adhere to copyright laws.
  • Email, Newsgroups, Discussion Lists, Bulletin Boards
    Such formats should include a full disclosure at the beginning or end of each message.
    This would not apply to communications between a licensee and a member of the public
    provided that the member of the public has sent a communication to the licensee and the
    licensee’s initial communication contained the disclosure information required above.
  • Instant Messages
    Full disclosure is not necessary in this format if the licensed entity provided the written
    full disclosure via another format or medium (e.g., e-mail or letter) prior to providing, or
    offering to provide licensable services.
  • Chat
    Full disclosure prior to providing or offering to provide licensable services during the
    chat session or in text visible on the same webpage that contains the chat session.
  • Social Media
    Full disclosure should be prominently displayed and easily understood and be no more
    than one click away from the viewable page. Each real estate firm should have and
    maintain a written policy regarding their licensee’s use of social media.
  • Multimedia Advertising (e.g. Web based, executable e-mail attachments, etc.)
    Full disclosure should be visible as part of the advertising message.
  • Banner Ads
    Should link to a webpage that has full disclosure that is a single click away from the viewable page, unless the banner ad has such full disclosure.

 

Posted in: Real estate industry, Residential real estate Tagged: advertising, consumer protection, DOL, social media

We survived our first audit from DOL

I found out Friday that the Washington State Department of Licensing audits all new real estate brokerages their first year.  I found out because of a phone call from the auditor who was waiting outside my home/office. (Yes, we run the company out of our home. I meet clients at their office, home, at a property they are buying/selling/leasing, or if all else fails, Starbucks.

Unfortunately for the auditor, I was visiting a client and no one is there to meet him.  So, we rescheduled for today.

I’m happy to say things went fine.  I was mostly confident it would.  But, part of our conversation on Friday had me worried.

Signs, signs, everywhere signs….

The Friday conversation was about office signs.  Not the signs our office uses on properties we list… but actually a sign at the office. The city of Duvall says home-based businesses can have no signs. The auditor said the state requires I have a sign. I reviewed the rules and regulations closely when I opend the business and was confident when I responded, “I don’t think so.” (Hey, it would do no good to be too forceful with the auditor… and I am human, I could have missed something.)  I asked him to be sure and point out the regulation when we met today.

In the end, it turns out we are both right. (I will continue to play nice wth the DOL.)  According to the auditor when he came for the appointment today, the regulation for the sign has been removed, but by accident. He said it will be re-instated by end of year.  I’ll be writing the real estate commission to suggest it stay removed.  I don’t want to have to choose between following DOL rules, city rules, or having to change my business model to have a ‘real’ office that does my clients no good.

Business Card
Business Card

Anyway, on to the rest of the audit…

The rest of the audit went smoothly.  The auditor reviewed the paperwork for closed in in-process transactions.  The main focus was making sure that earnest money deposits were handled correctly.  Our policy is to always have buyers deposit earnest money with 3rd party escrow.  So, that makes the audit process much simpler.  No ‘trust account’ to review.  And, happily all the deposits happened on-time and we had all the receipts.

Other items reviewed were:

  • My business cards, which passed muster. Check it out for yourself.
  • Our business and real estate licenses (which you can view from “Client Resources” links on this page). Again, all fine.
  • Transaction summaries – Our auditor was a bit of a geek, like me, so was interested in our use of Office 365 and sharepoint to track this information.
  • Issues we would have to deal with if we had other brokers in the office (all good info for the future)

Areas for improvement – written procedures

Of course, we are not perfect.  The one area where we had shortcomings is in written procedures.  This is something I’ve been working on, but as a sole broker, its been a low priority to write down procedures and policies for me to follow.  But, the auditor pointed out that there are regulations that require some policies and procedures to be written, even though I am the sole practitioner. So, its now on the schedule to get these written up. I’ll take that oppotunity to outline the additional procedures needed for when we bring other brokers on board.

All in all, not a terrible experience.  No audit is pleasant, but this wasn’t as bad as I feared.  Apparently, I get to look forward to repeating the experience about once every 3 years.  I plan on the future visits to go at least as smoothly (signs or no signs).

 

Posted in: Real estate industry, Technology and real estate Tagged: audit, DOL, licensing, procedures

About Us

Welcome to Tellus Realty! We’re is committed to helping you make informed and rewarding decisions whether your or looking to buy and sell real estate, or in search of a new home for your license. Tellus Realty provided a more personal, one-on-one experience. We are not affiliated with a big-box or franchise where agents and clients are viewed as a statistic or number. Our team focuses on service and quality.

Our Communities

  • Duvall, WA
  • Woodinville, WA
  • Monroe, WA
  • Carnation, WA

Contact Us

PO Box 1113 Duvall, WA 98019

Office@TellusRE.com
877-413-7325
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