Thursday, September 28, 2023

Every second week, I search through the chesterfield cushions for spare change and, maybe, an idea for this column. I can get quite panicky when it’s an hour before deadline and I don’t have the foggiest idea what to write about. But then, without fail, someone phones me with a question or a complaint, and presto—I have content to write about. 

It’s been a while since I wrote about reciprocity advertising (Rules of Cooperation, Rule 8.12). It’s not the world’s most exciting topic, but many members seem to misunderstand it, so it’s worth revisiting.  

REALTOR® Code Article 14 and Rules of Cooperation, Rule 8.03 have something to say about whether members can advertise other members’ listings. Generally, they cannot.  

The default setting, under Article 14, is that one's brokerage’s listings cannot be advertised by another brokerage (or member) if the listing contract has restricted advertising to the seller’s brokerage. And guess what? The MLS® listing contract restricts advertising to the seller’s brokerage. That means if it isn’t your listing or sale, you can’t advertise it anywhere unless at least one of the following applies:  

  • You have the express consent of the seller’s brokerage (or the seller’s REALTOR®) to advertise their listing. (I suggest getting that consent in writing; a simple text will do.) 
  • The advertising brokerage has sold the seller’s brokerage’s listing (no consent is required for “I just sold” ads) (Rule 8.05). 
  • The seller’s brokerage’s listings are accessed via a Virtual Office Website according to Rules of Cooperation, Section 9.  
  • It’s reciprocity advertising, meaning the seller’s brokerage and the advertising brokerage have both signed reciprocity contracts with the Real Estate Board, and the advertising brokerage meets reciprocity display requirements and shows the name of the seller’s brokerage (Rule 8.04 and 8.12). 

That brings us to what is, I think, a fundamental member misunderstanding about reciprocity. 

Reciprocity is an agreement between the board, the seller’s brokerage, and all other reciprocity brokerages. In a nutshell it’s an agreement saying, “I, the brokerage, am agreeing that other reciprocity brokerages can advertise my listings without asking for permission each time, as long as other brokerages give me the same courtesy.”  

As noted, reciprocity advertising must meet certain display requirements and must show the name of the seller’s brokerage.  

"The misunderstanding seems to be where members can run their reciprocity content ads. Simply put, under Rule 8.12; you can post the reciprocity content to your Realtor and brokerage website owned and controlled by you or your brokerage. Not anywhere else. "

Do you own or control YouTube, Instagram, Facebook, X (formerly Twitter), WeChat, and other similar social media platforms? Do you own or control craigslist or kijiji? (If you do, I doubt you’d need to be working for a living!).  

This means all your advertising of other members’ listings posted on these platforms is not okay. For example, you can’t do a walk-through using Instagram or YouTube videos of another member’s new listing, saying something like, “Hello everyone, let’s look at my favourite property just listed this week. Look at the gorgeous view. Wow! The kitchen is a dream; imagine how happy anyone would be to live here.” Again, this type of advertising on social media (or anywhere else not owned or controlled by you) is not reciprocity compliant. 

This rule has been in place for years, and I’ve written and spoken about it more than a few times. But still, there’s a disconnect between the standard and what members think they’re allowed to do. Remember, reciprocity advertising is an exception to Article 14 and Rule 8.03; which limit the advertising of listings to the seller’s brokerage. 

There are some terrific websites out there, and members can be very creative with their advertising. But the world’s most creative professional advertising, if done outside of the rules we’ve all agreed to follow, isn’t okay.  

Here’s the REALTOR® Code’s definition of advertising: 

"ADVERTISING means any marketing activity to promote the brokerage, the REALTOR® or a transaction and includes any verbal, written or graphic representation in any form, including electronic media."
The REALTOR® Code

Can I suggest, please, that you audit your advertising and rethink it if you are posting information about other members’ listings on websites not owned and controlled by you?  

I wish you the best.