As one that searches the Internet everyday looking at real estate Websites, checking Website placement and doing real estate Internet research, I come across a lot of things. It's amazing how many real estate Websites never identify agent, brokerage, state of licensure, and if the agent or brokerage is even licensed to do business in that state or any state.

Unfortunately, this seems to be a growing trend.

Well-placed sites within the search engines are cloaked as information portals offering free advice, and ask the consumer to just fill out the following form so "we can better assist you." Those of us that are savvy to the agenda know that it is more about harvesting referral leads, selling leads for mortgages and financing, and in general making money than in serving the consumer.

We must stop and ask - do they have a right to do this? This is a situation that cannot be ignored by our industry. Those that are not legitimately licensed in a state or jurisdiction can bypass all license law, doing real estate with impunity in a states or which they are unlicensed. It is a major dilemma for our industry and will tarnish the public's perception of real estate industry as nonprofessional, deceptive, and lacking ethics. Since there is no concerted effort to make members conform to any standards in regard to Internet business: brokers, the National Association of REALTORS (NAR), agents, brokers, and state regulatory agencies all have a share in the blame.

It is mind boggling in this new technology millennium, that there is absolutely no policing of the current situation by brokers, local boards or state regulation authorities. Are they out to lunch? Since many do not understand the nature of the Internet, they avoid the issue, and focus on displayed listing agreements, broker reciprocity, IDX, and virtual office Websites (VOW’s), but those are profit and listing control issues that don’t take into account how individual licensees’ Websites are used. We must keep in mind that marketing is an interaction at a primary level with consumers, and as well as ethical issues, we must comply with license law if any.

Since most in the real estate industry agree that the Internet drives more business, sells more homes than traditional marketing, newspapers, direct mailings, magazine ads and direct mailings... then why do we not have to comply with the minimum standards for identifying ourselves on the Web? The market exposure of the Internet takes our advertising outside our local communities, across state lines, across International borders, and around the globe twenty four hours a day, seven days a week! That means the potential for fraud, and deception increase exponentially! Since our brokers are the first line of defense in complying with license law… doesn’t it make any sense they should review the websites of all agents that are under their license?

So there are many levels of noncompliance to state real estate license law. Most states have minimum requirements for real estate advertising and in print media. We conform to required state license laws in our printed ads by including: name of licensee, address of brokerage where we are licensed, city, state, zip code, and a phone number in all our printed ads. To ensure compliance in most jurisdictions the broker is ultimately responsible to review those ads before they are run or published. So if the Internet is so much more visible to the public at large why do we not have any supervision? Many real estate sites are cloaked in total anonymity! There is no identification whatsoever that identifies a licensed broker privilege of state license to do so. A few states have set minimum requirements for real estate web sites to comply with similar identification on the main or index page of a real estate web site, but there are no teeth, supervision or policing this policy to be effective.

Another disturbing trend in our real estate industry that is now very common on the Internet…is that many agents that brand their own image have totally neglected to even mention the firm in which they are associated with, nor the location of the office in which they are licensed! In this sense, branding of this sort is a total marketing ego trip that just ignores the law. A willful omission of this sort is inexcusable, and their managing broker is accountable for the agents’ lapse of discretion. Why is this important?

It is important because we are accountable not only to state license law, but to the public at large for our behavior. It sets a stage that this overwhelming marketing gap could be tantamount to massive fraud and misrepresentation. In an unregulated, and unsupervised scenario, one can skirt any real estate license law to do business without licensure. The public is at major risk. As an industry we need to do something ASAP, before we are regulated by the state, and lawsuits that will further tarnish us for years to come.

There are many possible solutions that are some suggestions to remedy the current situation:

• Webmasters must be informed of conforming standards for our regulated industry.

• Real estate companies and brokers should develop Internet polices for agents.

• Agents should review their own sites for compliance to state license law.

• Brokers should review agents’ sites to ensure required information appears.

• Sites content should also be examined.

• Questionable sites should be further examined, and reviewed.

• Local real estate associations and boards must acknowledge and become involved in the issues.

• Local state Realtor associations need to pressure NAR for standards.

• Branded sites need to make sure they identify licensure as required by state law.

Since this topic is not a localized one, and deals with potentials of fraud, consumer perception of our industry, interaction between agents, and brokerages, and non compliance with state real estate license regulatory law, the National Association of Realtors must get involved. We need proactive interest in this area. As members of the NAR, we can appreciate the value of our national standards of ethics, and know that with this fundamental change in marketing our products and services, we must accommodate and define policy in this uncharted territory. It will be easier for all if change is implemented within our own industry, rather than when it is too late and we are regulated by the state, lawsuits, and litigation for deceptive practices. Compliance and ethics can go a long way in improving our professional image. So let’s not waste this opportunity to do so.

Published: March 19, 2004

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Jim Crawford, ABR, e-PRO 500 is a Broker Associate with REMAX Greater Atlanta in Roswell, Georgia, where he and his wife, Ellen, work as a team in the northern Atlanta suburbs. His marketing ideas have been published in numerous trade publications and he is also an online real estate coach, with a self-tutorial coaching site for real estate professionals. Jim was a featured speaker at the November 2004 National Association of REALTORS® convention in Orlando, he also recently spoke at the Wisconsin REALTORS® convention in September 2005, and at the Atlantic Connection in Halifax Nova Scotia September 2006. Visit his website at RealEstateTechCoach.com, or e-mail him at .