Real estate advertising must be clear and accurate
Many real estate ads and flyers seem to suggest that a particular salesperson is “No. 1,” or has the “most sales.” They can’t all be true. What’s going on? Real estate sales is a very competitive industry and the services and experience offered from one salesperson to another may vary significantly.
Flyers are one way salespersons can differentiate themselves from the competition, but if the claims they make all seem very similar, it can be confusing.
The legislation governing real estate professionals provides several rules for advertising. In general, the rules prohibit advertising that is false, misleading, deceptive or inaccurate.
As you noted in your question, a common advertising claim is that the person is No. 1 in sales.
As with any claim, the starting point is that, if it’s true, then it can be included in an advertisement. Of course, something may be true but only over a certain time, in a certain location or for a certain type of real estate.
The claim that the salesperson is No. 1 in sales could be considered false if it cannot be backed up by data from an authoritative source, such as monthly or yearly statistics compiled by the brokerage or a real estate board.
It could also be considered a misleading statement if the ad leaves the wrong impression with the reader because it doesn’t provide enough detail about the claim.
Is the salesperson No. 1 within the brokerage where they work, or within a specified neighbourhood? And during what time frame? If the claim is not specific, then the ad could inadvertently lead the reader to believe something other than what is true.
A deceptive statement takes that one step further, because it deliberately tries to mislead the reader by excluding context or facts required to verify the claim.
One form of an inaccurate statement in an ad is one that is imprecise.
An example of this could be the promise of a “$1,000 cash-back” rebate without providing information about any limiting conditions attached to that rebate.
The general rule of thumb is that information to back up claims or promises has to appear clearly in the advertisement or in some other place (such as a website) to which the reader can be easily directed.
If, on the other hand, the claim is an obvious promotional catchphrase — such as, “the world’s bestlooking agent” — then that rule does not apply.
A salesperson might be the No. 1 salesperson in Bigtown, in 2012, according to a local newspaper poll or according to their mother. Either way, it has to be clear in the ad.
Everything I have said about advertising professional services applies to advertisements about properties as well. You should be able to take what is said at face value based on the plain meaning of the words and phrases in the advertisement.
If you believe an advertisement is unclear, before filing a complaint with RECO, we encourage you to contact the brokerage for an explanation.
Advertisements are a convenient way to become aware of the real estate professionals who work in your neighbourhood, but your decision to enter into a representation agreement should not be based on an advertisement alone.
Interview a few candidates and ask probing questions about their experience, the services they offer and any claims made in their advertising — and check references before making a decision. Joseph Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real estate professionals in Ontario. Email questions to askjoe@reco.on.ca. Find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/RECOhelps.