New Policy for 'Coming Soon' Advertisments
October 28, 2016
The use of ‘Coming Soon’ advertisements by licensees for properties pending placement on the MLS system has noticeably increased over the past few months.
The next time you take to Instagram or Facebook to highlight an anticipated future listing, take a moment to ensure what you are displaying meets the Commission’s Board of Director’s recently approved policy setting minimum standards for ‘Coming Soon’ advertising.
Sellers must agree to the terms of their property being advertised
The approved policy would be applicable to any advertisement for a property where:
- the property is not already subject to an effective brokerage agreement;
- the property is not entered into the MLS® system;
- the property is not available for general showings or open houses;
- the property is not otherwise given full exposure to the market; and
- the licensee anticipates a property will be listed for sale and advertises it on a limited basis as ‘coming soon’.
Any agreement to offer ‘Coming Soon’ advertising does not constitute a brokerage agreement or service agreement.
The Commission does not have a mandatory form to offer ‘Coming Soon’ advertising to a seller, however brokerages may create their own
Any agreement that is used for this purpose must include:
- the name of the brokerage;
- the name of the seller(s)
- the fee charged, if applicable; and
- an expiry date.
The approved policy states that offering or agreeing to offer ‘Coming Soon’ advertising for a seller must be in writing, but does not obligate the seller to enter into a brokerage agreement or a service agreement with the brokerage.
All ‘Coming Soon’ advertising must include certain information
All ‘Coming Soon’ advertisements, whether it is a social media post, a lawn sign or an online ad, must include the following:
- the full brokerage name; and
- the following qualifying statement identifying that the property is not currently on the market: “This is not an offering for sale”.
Setting rules around this type of service opens the door for potential compliance issues
With the introduction of these standards, licensees should be aware that not following the approved policy could result in disciplinary action.