Advertising a Property Outside of New York State
I am a licensed real estate broker and I have been asked to advertise a property on my website that is located outside of New York State. What are the best practices that a New York real estate broker should follow when advertising a property on its website that is located in a state or country where the real estate broker is not licensed?
The following are the best practices that should be followed when a New York real estate broker advertises a property on its website that is located in a state or country where the real estate broker is not licensed:
1) Determine whether the laws of the other state or country permit advertisements by a real estate broker who is not licensed in that location (generally speaking, all laws and regulations pertaining to real property are governed by the laws and regulations where the real property is located).
2) Obtain the property owner’s permission to advertise the property (after disclosing to the owner that the broker is not licensed in that particular location).
3) Indicate in the advertisement that the real estate broker is advertising the property at the request of the owner of the property.
4) Indicate in the advertisement that the real estate broker does not have a real estate broker’s license where the property is located.
5) Indicate that the advertisement is for marketing purposes only and that any questions or interest in viewing the property will be directed to the owner of the property or a real estate broker licensed where the property is located.
6) If the New York real estate broker is going to refer leads generated by the advertisement to a real estate broker where the property is located, there should be a written referral agreement summarizing the terms and conditions of the referral arrangement between the two real estate brokers.
Important Tip: A core principle of the New York State rules and regulations pertaining to real estate broker advertising is that all advertising must be transparent, truthful and honest. The aforementioned best practices highlight these core principles and seek to ensure that the advertisement is not misleading to a consumer.
|Neil B. Garfinkel,
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP