Real Estate PracticeChapter 2 · 40 practice questions

Chapter 2: Marketing and Advertising Rules

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Marketing and Advertising Rules

MARKETING & ADVERTISING RULES — REAL ESTATE LICENSING CORE PRINCIPLES No False/Misleading Ads Truthful representation No Deceptive Practices Full disclosure required No Unsubstantiated Claims Proof of claims REQUIRED DISCLOSURES Broker Name & License # Must be clearly visible Office Address Physical location "Equal Housing" Statement Non-discrimination notice PROHIBITED ACTIONS Blind Ads No broker identification Misleading Photography Altered representations False Pricing Bait-and-switch tactics PLATFORM RULES Internet / Digital Ads Same rules apply Social Media Disclosure required Email / SMS Opt-out provisions ENFORCEMENT & PENALTIES Complaint Filed Consumer / Broker Investigation Real Estate Commission Hearing Administrative review Dismissed No violation found Penalties Fines / Suspension Possible Penalties: • Fine up to $10k • License suspension • License revocation RECORD KEEPING REQUIREMENTS Ad Copies Retention 3 years minimum Transaction Records 5 years minimum Consent Forms Written authorization Digital Records Secured storage Core Principles Disclosures Prohibited Platform Rules

Overview

This chapter covers the regulatory framework governing how real estate professionals in British Columbia may market themselves, their services, and the properties they represent. Advertising is broadly defined to include any communication that promotes a licensee or their services, regardless of medium or format. The core principle is that all advertising must be truthful, not misleading, and must clearly identify the responsible brokerage and licensee. The rules apply to traditional media (newspapers, signs, bus shelters), digital platforms (social media, websites, video), and any other form of promotion. Failure to comply can result in disciplinary action, fines, and reputational harm.

Key Concepts

Material Omissions and False or Misleading Advertising

False or Misleading Advertising False or Misleading Advertising Rule 4‑7 of RECBC — Real Estate Services Act (RESA) ⚠ Inaccurate statement False or erroneous information in an advertisement: E.g. incorrect square footage, non-existent direct access ⚠ Substantial omission Relevant fact not mentioned that could mislead: E.g. public trail between garden and shoreline ("lake access") ✓ Duty to verify The licensee must verify accuracy BEFORE publication, even if info comes from seller PROHIBITED Any false or misleading advertising is strictly prohibited Examples of non-compliant advertisements 1. Unverified square footage "2,500 sq ft" — the licensee did not verify the listing Breach of duty 2. Premature "Sold" Advertised before the removal of conditions and closing Legal status not final 3. "#1 Agent in the region" Comparative claim without objective data Not verifiable — prohibited 4. Omission of lake access Public trail separates the garden from the shoreline Substantial omission Record retention obligation for advertisements: 5 years — Brokerage approval required — Written consent for testimonials Real estate brokerage training — Québec/Canada — Chapter 2: Marketing and advertising rules
Testimonials and Client Reviews Testimonials and Client Reviews Code of Ethics — Real Estate Brokerage License (Quebec/Canada) ✓ Written consent required Before publishing a testimonial, obtain the client's explicit written consent. • Signed and dated document specifying the intended use • Mandatory retention: minimum 5 years • Removal upon client request at any time ✎ ✗ No compensation / incentive It is prohibited to offer any remuneration in exchange for a review or testimonial: • Gift cards, discounts, gifts • Reductions on fees or commissions • Any form of advantage, direct or indirect ⊗ ✓ Privacy compliance (PIPA) Act respecting the protection of personal information in the private sector. • Obtain consent for any information • Limit collection to what is necessary • Protect clients' personal data • Allow access to and correction of data 🔒 ✓ Recommended best practices Authenticity and transparency of reviews: • Solicit spontaneous and honest reviews • Do not selectively filter negative reviews • Respond professionally to criticism • Publish verifiable and recent testimonials • Mention the brokerage in all publications ★ Foundations: Rule 4-7 RECBC / Real Estate Rules · RESA · Code of Ethics · Act respecting the protection of personal information (Quebec)

An advertisement is considered false or misleading if it contains an untrue statement or omits a material fact that could influence a reasonable person’s decision. A material omission is information that, if known, would likely affect a buyer’s judgment or conduct. For example, advertising a property as having “direct lake access” while failing to disclose that a public trail separates the garden from the shore would be a material omission. The omission need not be intentional; even an inadvertent failure to include relevant information can render the advertisement non-compliant.

Licensees have a duty to verify the accuracy of information before publishing it. Relying solely on a seller’s unverified statement (e.g., square footage) and then reproducing that information on a brokerage website constitutes a breach of due diligence. The licensee is responsible for ensuring that all disseminated information is accurate, regardless of its source. This duty applies to all advertising, including property details, photographs, and claims about the property’s condition or features.

Identification Requirements in All Advertising

Identification Requirements in Advertising Identification Requirements in Advertising RECBC Rule 4-7 — Minimum requirement for all advertising MINIMUM REQUIREMENT All advertising MUST contain: ✓ Brokerage name as registered ✓ Licensee name (or variation approved by the brokerage) No other elements legally required VISIBILITY The brokerage name must NEVER be less visible than: • Team name • Logo • Slogan The brokerage must be at least as visible WITHOUT EXCEPTION All media: ✓ "For Sale" signs ✓ Videos (legible at all times) ✓ Social media ✓ Personal websites ✓ MLS® — with authorization PROHIBITIONS ✗ False or misleading advertising ✗ Substantial omission of a relevant fact ✗ Unverifiable comparative claims ✗ Advertising "Sold" before actual closing ✗ Incentives in exchange for online reviews ✗ Non-licensee presented without clear mention LICENSEE OBLIGATIONS ✓ Verify accuracy of information ✓ Obtain brokerage approval ✓ Written consent for testimonials ✓ Retain advertisements for 5 years ✓ Respect MLS® copyright ✓ Name variation approved in writing RESA + Code of Ethics

The foundational rule for advertising in British Columbia is that every advertisement must clearly show the brokerage name as it appears on the licence and the licensee’s name as it appears on their licence (or a brokerage-approved variation). This requirement is absolute and applies to all media without exception:

  • Signage: “For Sale” signs must include the brokerage name and the licensee’s name. Telephone numbers, prices, or logos are optional.
  • Print advertisements: Newspaper ads, flyers, and bus shelter ads must include the brokerage and licensee name. No other information (price, photo, address) is mandatory under Rule 4-7, though brokerages may choose to add it.
  • Social media and online platforms: A Facebook post promoting a rental property must include the brokerage name and the licensee’s name. Property details, while useful, do not replace this identification.
  • Video advertisements: In videos broadcast on YouTube or other platforms, the brokerage name must be clearly legible to the viewer. Simply mentioning it in audio or placing it in the description is insufficient.
  • Personal websites: Even a website that contains no property listings and only presents the licensee’s professional background is considered advertising. It must therefore clearly display the brokerage name.
  • Team advertising: Real estate teams must also adhere to the identification requirement. The team name does not replace the brokerage name, and the brokerage name must never be less visible than any other information, including the team name or logo.

Visibility and Prominence of Brokerage Name

The brokerage name must be at least as visible as any other information in the advertisement. If a team uses a logo where the team name is in large letters while the brokerage name appears tiny at the bottom, the advertisement is non-compliant. The rule ensures that the public can readily identify the brokerage responsible for the advertisement and the licensee. The brokerage name must not be overshadowed, visually diminished, or placed in a secondary position.

Comparative and Puffery Claims

Claims such as “#1 Agent in the Region” or “Top Producer” are considered comparative advertising and must be supported by objective, verifiable data. Licensees cannot make unsubstantiated superlative claims. If no proof exists to support the claim, it is prohibited as false or misleading. Similarly, puffery that cannot be verified (e.g., “the best service in town”) should be avoided unless backed by documented evidence.

Property Status and Timing of “Sold” Announcements

Announcing a property as “Sold” before all conditions of the offer have been waived and the transaction has actually closed is misleading. The public may be misled about the property’s actual availability and status. Licensees must wait until the sale is firm (all conditions removed) or, ideally, until the closing has occurred before using terms like “Sold,” “SOLD,” or similar language.

Record Retention for Advertising

The Real Estate Services Act regulations require that all advertising records be retained for at least five years. This includes copies of print ads, screenshots of social media posts, videos, website pages, and any related documentation. The obligation applies to electronic records as well as physical copies. Brokerages must ensure they can produce these records upon request by the regulator.

Advertising Record Retention (5 years) Advertising Record Retention (5 years) RECBC Rule 4-7 · Real Estate Services Act · British Columbia / Canada 📢 All Advertising ✓ Print ads (newspapers, flyers) ✓ Social media (Facebook, Instagram) ✓ Videos (YouTube, social networks) ✓ Personal websites and blogs ✓ "For Sale" signs ✓ MLS® content ✓ Testimonials and client reviews 📋 Legal Requirements ✓ Name of brokerage (as registered) ✓ Name of licensed representative ✓ Visibility: brokerage ≥ team/logo ✓ Accuracy of information ✓ Prior verification of data ✓ Written consent (testimonials) ✓ Brokerage approval ⛔ Prohibitions ✗ False or misleading advertising ✗ Substantial omission of facts ✗ Advertising "Sold" before closing ✗ Unverifiable claims ✗ Incentives for online reviews ✗ Non-licensee presented as agent ✗ MLS® reproduction without authorization 🗂️ RETENTION OBLIGATION — 5 YEARS ⏱ Minimum duration: 5 years Paper and electronic formats Each advertisement with date of publication Screenshots, copies, recordings ✓ PRODUCIBLE Upon regulator request Regulator : Real Estate Council of British Columbia (RECBC) · Rule 4-7 · RESA Types Requirements Prohibited Retain

Testimonials and Client Reviews

Using a client’s testimonial in an advertisement requires the client’s written consent before publication. This is a privacy protection requirement under the Real Estate Services Act and related guidelines. Furthermore, offering compensation or an incentive (e.g., a $50 gift card) in exchange for a testimonial is strictly prohibited, even if the review is genuine. Such incentives compromise the authenticity of the testimonial and can mislead the public.

Unlicensed Individuals in Advertising

If an advertisement includes a person who is not licensed (e.g., a personal assistant, a photographer, or a family member), their status must be explicitly indicated to avoid confusion with a licensed professional. Failing to disclose that a person is unlicensed, or presenting them as part of the sales team, constitutes false and misleading advertising. The public must be able to clearly distinguish between licensees and unlicensed support personnel.

Name Variations for Licensees

Licensees may use a variation of their legal name (e.g., “Bob” instead of “Robert”) in advertisements, provided that the variation is approved by the brokerage and does not mislead the public. The name used must still be traceable to the licensee’s official registration. If the brokerage has not approved the variation, the licensee must use the name exactly as it appears on their licence.

Important Regulations, Procedures, and Code of Ethics Provisions

RECBC Rule 4-7 (Advertising)

Rule 4-7 of the Real Estate Council of British Columbia (RECBC) is the central regulation governing advertising. It mandates that every advertisement must clearly identify:

  • The brokerage name as it appears on the licence.
  • The licensee’s name as it appears on their licence, or a name approved by the brokerage.

No other information (licence number, address, phone number, price, photos) is legally required, though many brokerages add these for clarity or branding purposes. The rule applies to all media and all forms of promotion.

Real Estate Services Act (RESA) and Regulations

The RESA provides the statutory framework for advertising rules. Key provisions include:

  • Section 35 (False or Misleading): Prohibits false, misleading, or deceptive statements in the course of providing real estate services.
  • Regulation 5.1 (Records): Requires that all records, including advertising, be retained for five years after the date of last use.
  • Regulation 6.1 (Testimonials): Prohibits offering compensation or any benefit in exchange for a testimonial.

Privacy and Consent Requirements

Under the Personal Information Protection Act (PIPA) and RECBC guidelines, licensees must obtain written consent before using a client’s personal information—including their image, name, or testimonial—in advertising. This requirement applies to both testimonials and photos of clients or their properties.

MLS® Content and Copyright

When incorporating MLS® listing sheets or content into advertisements (e.g., on a personal blog), licensees must:

  • Obtain authorization from the real estate board.
  • Include the brokerage name and the licensee’s name on the advertisement.
  • Comply with copyright and licensing terms governing the use of MLS® data.

Unauthorized use of MLS® content may violate both advertising rules and intellectual property rights.

Common Relationships Between Concepts

Mandatory vs. Optional Elements in Advertising

Mandatory (Always Required)Optional (Brokerage May Add)Brokerage name as per licenceProperty priceLicensee name as per licence (or approvedvariation)Property address(For signs: same as above)Licence numberPhone numberPhotos or logosDescriptive text

Visibility Hierarchy

Brokerage Name Visibility Hierarchy Brokerage Name Visibility Hierarchy RECBC Rule 4-7 — The brokerage name must never be overshadowed CENTRAL PRINCIPLE The brokerage name must be at least as visible as any other information Comparative visibility scale ✓ Brokerage name Licensee name Team logo Trade name ≥ ≥ ≥ The brokerage name must be ≥ to all other elements — never smaller, never less visible APPLICATION RULES • Exact name as registered in the registry • Licensee name must match the permit • No other required elements (license no., price, photo) • Name variations approved in writing by the brokerage PROHIBITIONS ✗ Team logo larger than the brokerage name ✗ Trade name that overshadows the brokerage ✗ Team name replacing the brokerage name ✗ Brokerage mentioned only at the beginning of a video MEDIA EXAMPLES — ALL SUBJECT TO THE SAME RULES "For Sale" sign Videos / YouTube Social media Personal website MLS® content Testimonials / Reviews Advertising retention: 5 years minimum — Brokerage approval required for any variation

In any advertisement, the brokerage name must be at least as prominent as any other information. This is especially relevant for team names, logos, or comparative claims. The public should never need to search for the brokerage name.

Incentives vs. Authentic Testimonials

Any benefit given in exchange for a review—whether monetary (gift cards, discounts) or non-monetary (prizes, free services)—is prohibited. An authentic testimonial given voluntarily, with written consent, is allowed. The distinction lies in whether the testimonial was solicited through an inducement.

Timing of Property Status Announcements

  • Before conditions waived: Advertising “Sold” is misleading.
Timing of Sold Announcements Timing of Sold Announcements RECBC Rule 4-7 — False or Misleading Advertising (British Columbia / Canada) Signing Closing PHASE 1 — BEFORE REMOVAL PROHIBITED Advertising "Sold" before all conditions are removed is misleading. PHASE 2 — CAUTION CAUTION REQUIRED After conditions are removed but before closing, caution is required. PHASE 3 — COMPLIANT COMPLIANT After actual closing, the "Sold" announcement is compliant and accurate KEY RULES — Advertising and Transaction Status ✗ Advertising "Sold" before conditions are removed = misleading ⚠ After removal, before closing = caution — legal status is not final ✓ After closing = compliant — the announcement reflects legal reality Duty to verify: the licensee must ensure the accuracy of published information, even if it comes from the seller. RECBC Rule 4-7 • Real Estate Services Act (RESA) • Advertising records retention: 5 years minimum
  • After conditions waived but before closing: Best practice is to wait until the sale is firm (conditions removed) but some brokerages allow “Sold” at that point if clearly marked as conditional; however, the conservative approach is to wait until closing.
  • After closing: Advertising “Sold” is accurate and compliant.

Personal vs. Business Advertising

Even promotional material that does not mention a specific property is advertising if it promotes the licensee or their services. A personal website with only a biography, a LinkedIn profile, a YouTube channel, or a social media account used for business purposes must all comply with identification requirements. The same rules apply to any communication that encourages the public to engage the licensee.

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