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Internet Advertising Regulations & DRE's Regulations

2019.02.27 22:49 Views : 1421

Internet Advertising Regulations

The regulations regarding both advertising and doing real estate business over the Internet vary, depending on whether the individual doing such business is licensed as a real estate professional in California. According to the Commission's Regulation 2770, anyone who advertises or otherwise disseminates information about services over the Internet (including the World Wide Web or similar electronic common carrier systems) will NOT be considered to be in any manner acting in the capacity of, or advertising as, a real estate broker in California, AS LONG AS any ONE of these conditions applies:

(1) If the advertisement or other information involves a service, BUT IS:

  • NOT directed to any particular person or customer located within California;
  • LIMITED to general information about the services offered to customers or the public in general; AND
  • Includes the following words: "The services referred to herein are not available to persons located within the State of California."

(2) If the advertisement or information does not involve a service provided in connection with activity for which a real estate license is required: OR

(3) If the advertisement or information is not being published, circulated, or transmitted on behalf of another person(s).

It is NOT required for a person who advertises or disseminates information about providing a service to have a real estate license if any of the following conditions apply:

  1. The person who is publishing or otherwise circulating the information is exempt from license requirements as set forth in the Business and Professions Code, Sections 10133 or 10133.1;
  2. The services do not include any actions for which a license is required; or
  3. Before there is any direct communication with a specific customer, the business person already has implemented policies and procedures in place for such communication, keeping in mind that the person replying to the communication must not violate the law by acting in the capacity of a real estate licensee; AND
  4. All advertising and information that is made by a California real estate broker MUST STATE SO CLEARLY. Under the B&P Sections 10235.5 and 10140.6, licensees who advertise on the Internet are required by law to indicate their license status. 

Click here to read DRE’s list of FAQ’s for Doing Business on the Internet.

DRE's Regulations

Anyone who is NOT a California licensed broker may not legally solicit California residents, because acting in such a capacity is considered conducting activity for which a real estate license is required. The DRE's website notes that in such a situation, "Because the Internet can be read by anyone in any location, advertising your services on the Internet would be considered soliciting a California resident when read by a resident of this state."

 

Remember that any false or misleading advertising - on the Internet or via any other medium - can result in administrative, civil, and/or criminal penalties.

 

The preceding regulations have been set forth by the DRE in response to the ever-expanding use of the Internet in the business world, and more precisely, in the real estate business world. The DRE regulations regarding a real estate licensee's use of the Internet in his or her business are considered not only strict, but also trend-setting. Realty Times, a real estate news site on the Internet with almost half a million visitors per month, stated that, regarding California's regulations for Internet usage by real estate professionals, "No doubt other states have or will quickly adopt the California standard, or an equivalent, to establish what is minimally necessary to protect the public interest."

 

In the following chapter, and throughout this course, you will come to know much more about the California Department of Real Estate.

Now it's time to conclude this chapter, on the following screen.

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