I have also seen this in the Garland, Tx. area.  I called the FSBO sign only to find out it was a realtor who had it listed.  It had a cobination lock.  Very misleading!

I'm not sure how it would be "breaking agency law" as I think there needs to be an agency realtionship that's in place and violated to do that but it should be illegal.  My real estate commission would be able to charge at least one infraction. Where I work, that's considered a "trade in real estate" and you can't do that without clearly identifying yourself as an agent.  Sounds like a sleazy tactic at the very least.

Misleading, in violation of the NAR COE and the Texas Real Estate License Act. (if they did this in Texas) However, I see it all the time. If you try and draw it to the agents attention, they probably wouldn't have a clue as to what you were talking about as they've probably never read the Code of Ethics or their state's licensing laws.

just my 2¢.

Mark

The NAR Code of Ethics

Article 12

REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS® shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS® is clearly identifiable in any such advertising. (Amended 1/93)

# Standard of Practice 12-5

     REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®'s firm in a reasonable and readily apparent manner. (Adopted 11/86, Amended 1/07)

The Texas Real estate License Act

§ 1101.652. GROUNDS FOR SUSPENSION OR REVOCATION OF

LICENSE.

(b)  The commission may suspend or revoke a license issued

under this chapter or take other disciplinary action authorized by

this chapter if the license holder, while acting as a broker or

salesperson:

(23)  publishes or causes to be published an

advertisement, including an advertisement by newspaper, radio,

television, the Internet, or display, that misleads or is likely to

deceive the public, tends to create a misleading impression, or

fails to identify the person causing the advertisement to be

published as a licensed broker or agent;

I've used FSBO directional signs, but no phone number or information. The reason I switched is because FSBO's were stealing all Realtor signs and leaving only the FSBO sign. Then when I switched signs they were no longer being taken.

In Florida, I believe this would be considered to be similar to a blind ad. This is illigal. You are required to have your company name in an ad minimum and it must say Real Estate Brokerage unless the name can be easily identified as such (for example Intracoastal Realty).

I have another one for you... My personal home is for sale and is on the MLS as well as everywhere point2 contributes. I received this email yesterday.

---

Hi,

Is your property still available? If so, would you be interested in selling it with a lease purchase?

Thank you.

Michael

PS: I am not a Realtor and prefer to deal direct with the homeowner only. If you are a Realtor, or if your house is already listed, please disregard this email.  Thank you.

---

So I responded with only the word "YES" and this is what I received. Talk about law violation (at least in Florida you can't perform the tasks of a licensee without being licensed and can not receive a fee based on a transaction without being licensed.)

I am considering reporting him to the Florida Real Estate Commission.

---

Good evening Joshua,  

   As you well know, the real estate market has changed dramatically, to say the least.  It seems every day there is another headline or article about the sorry state of real estate across the country.  

   That's the bad news.  The good news is that there are ways to overcome all these issues and sell your property for top dollar, and in reasonably quick fashion, also.  If you are open to selling your house with a lease purchase, Carbo Properties can show you how to sell your house for top dollar, even in a down market.  

   Utilizing our Lease Purchase Advantage Program, we will show you how to:

Quickly sell your property for top dollar, (even in a buyers market)

Sell your house without Realtors fees, (we are not Realtors), and without closing costs, (buyer pays all)  

Receive nonrefundable option money upfront  

Instruction customized for you  

How to accurately determine the market value of your home

How a Lease Purchase benefits you, the homeowner

We provide all necessary materials, including state approved, pro-seller agreements and documents

A complete marketing plan

Unlimited personal support and consultation by phone, fax, and email from start to close!

   Carbo Properties specializes in lease purchasing.  In addition to doing business nationwide, we also operate in Canada, Australia, New Zealand, and Guam.  We have been investing in real estate for the past fifteen years and know these markets well.  I am a published author on the subject and have spoken to real estate investment clubs around the country.  (My website is www.naked-investor.com).  By offering creative ideas and terms, we can show you how to level the playing field with today's buyers and put tens of thousands of dollars more in your pocket at closing.  Among the services we offer, our Professional Consultations have proven to be popular and profitable with homeowners nationwide.

   Our One on One Consultations will guide you through the Lease Purchase process from start to finish.  This includes:

A thorough explanation of all aspects of lease purchasing.  What it is and what it isn't.  

How to accurately determine the price and rental market for your property.

How to effectively and aggressively market your property for maximum exposure and quick results.

What to expect and what to say when the tenant/buyers call, (and they will).

How to screen your tenant/buyer prospects, including background checks and credit reports.

State approved, pro-homeowner contracts to secure your position and your most valuable investment.

All the support and assistance you require on an as needed basis throughout the process.  We are readily available seven days a week via phone, fax, and email.

   Our fee is only one half of one month's rent, or $550, whichever is less.  There are no additional charges of any kind.  Compare that to the typical six percent a Realtor charges.  Plus, you'll sell your house quicker and net tens of thousands of dollars more at closing!  Please see the attachment for additional information and contact information.  We are always available to answer your questions.  Thank you for your interest.

   Michael Carbonare

   Carbo Properties, LLC.

I haven't seen that in Oklahoma City -- yet! It seems there are always those people looking for a quick way to make some money and they don't care who they hurt or what laws they brake to do it! They are the ones that give all Realtors a bad name!  The ones that upset me are the ones who list a FSBO house for a VERY small amount of money and all they do is put the home in the MLS. The Seller does everything else -- including put a FSBO sign in the yard! All your dealings from then on out are with the Seller. If your Buyer decides he wants to make an offer on the house, you present the offer to the Seller and usually end up doing the Seller's Net Sheet and everything else the Listing Realtor would normally do all the way to close. Why should the FSBO list with a full-service Realtor when he can get the Selling Realtors to do it for free? The so called "Listing Realtor" simply collects his fee up front, puts it in MLS and he's through! I guess as long as there are people and there are rules there will be people who find ways to get around the rules--and there will be people like the rest of us who grumble about it but we continue to do whatever it takes to get the transaction to close so everyone can be happy!  There, I feel better now!

In my area you would need the name of the brokerage company and phone number. Thes must be the same size or larger than any other number also given on the sign.

In Michigan on any advertising must include brokerage and phone # or address and for good measure the EHO logo (but not required).  The problem is with regultiry boards under budget, over worked with formality, reporting an offender usually receives no attention or disapline action.  

I think most states say you must at the least say you are an agent. If you do anything, the easiest, fastes thing to do would be to inform his/her broker or office manager. Most brokers or offices also have an in house policy as well. Other than that, he is probably getting terrible unqualified leads and I would not worry too much about it. I think most folks who respond to those type of signs are looking for an owner finance or a soft shoulder because their credit is really bad.

Ethics are the foundation of our trade, all I can say is that it seems a bit un ethical and that is a shame.

That is considered a "blind ad" and in Florida is illegal and as Mark points out also violates the COE.  You must have at least the name of the brokerage on the sign......and that doesn't mean in teeny weeny letters at the bottom of the sign that you can only read if you're holding it up to your face!

In Puerto Rico on any advertising you make you MUST identufy yourself and include your license number. I've seen more and more brokers and agents advertise without providing their information. They also call to ask for information on a property and AFTER you've provided all the information, sales price, terms,etc. then they identufy as a Real Estate Agetn with a client for a possible co-broke. When they do this it really makes me mad so I end up reciting the law to them and indictaing that I have no interest in working with people who do not abide the law and who in one way or another give us "A bad name". I say report these people, get other agents to join you and file some type of petition to the board. If we don't protect our profession, who will guys? Its time to stop turning theother cheek and take affirmative action with all these little things that happen that some may view as unimportant but when you start adding them up and in the long run will give us big time headaches! Those are my 2½ cents for today.

Take care, Greetings from Puerto Rico!! Send your referals!

There must be a code of ethics to follow as well a the local boards codes, too.  Here in Toronto, we have 3 codes of ethics we have to follow; Canadian Real Estate Association, Ontario Real Estate Association and The Toronto Real Estate Board.  Here if they were brought to the attention of the powers that be, action would most likely be taken.  If an Realtor here has been found in violation of any terms/ethics the case is also published on the web for all to see by the associations.

Further to my comments above, we also have Legislation we have to follow, The Real Estate and Business Brokers Act of Ontario.  So for us here, "it's the law!"

O.k, I think we all agree we should identify ourselves in signs, ads etc.

What about our pay-per-click ads on google?

Most say '1000's of listings - free searches, MLS'

etc....

Rarely do they identify the site a a personal Realtors page. Is that as misleading or is the internet free from NAR/CREA regulations?

Or would the advertisement for the Realtor and their site be considered fair due to our lack of space available on the ad itself.

(As you can see I have a very hard time putting anything in 35 words or less LOL)

Simple word, complex meaning-- DISCLOSURE.

Each state is different on what is required DISCLOSURE but EVERY state has some sort of DISCLOSURE law.  

Yes, I would report it immediately, if not sooner.

Trista, the website must also meet minimal disclosures as set forth in your state guidelines or you could also be reported.  I do not believe that the PAY PER CLICK ad itself falls into the disclosure arena, but the website for sure does.

Report the incident, what the agent did requires clearly disclosing and identifying yourself as a real estate agent. He's probably licensed but most likely not a Realtor, the ethics seem to be a bit lacking.

I think Howard is right. That person is probably a licensed agent but not a REALTOR, exactly as he repeated several times.

Many small brokers do not require their agents to join NAR. Only the broker is a member of NAR/local MLS and all the listings sales or rentals go through the broker.

Hope that helps

Sagine