Current
through Register Vol. 56, No. 6, March 18, 2024
(a) Unless otherwise set forth herein,
subsections (b) through (o) below shall apply to all
categories of advertising including all publications, radio or television
broadcasts, all electronic media including E-mail and the Internet, business
stationery, business cards, business and legal forms and documents, and signs
and billboards.
1. Individuals operating as
sole proprietors and licensed as employing brokers shall conspicuously display
on the exterior of their maintained place of business their name and the words
"Licensed Real Estate Broker".
2.
Firms licensed as corporate or partnership brokers shall conspicuously display
on the exterior of their maintained place of business their regular business
name and the name of the individual licensed as their broker of record and the
words "Licensed Real Estate Broker".
(b) All advertising of any licensed
individual, partnership, firm, or corporate broker shall include their regular
business name which for the purposes of these rules, shall mean the name in
which that individual, partnership, firm or corporation is on record with the
Commission as doing business as a real estate broker. All advertising by a
referral agent, a salesperson or a broker-salesperson shall include the name in
which they are licensed and the regular business name of the individual,
partnership, firm or corporate broker through whom they are licensed. If such
advertisements contain a reference to the licensed status of the person placing
the ad, their status as a referral agent, a salesperson or a broker-salesperson
must be indicated through inclusion of a descriptive term as provided in (e)
below. A referral agent or salesperson may not indicate in any advertisement or
otherwise that he or she is licensed as a broker-salesperson.
1. In all advertisements which contain the
name of a referral agent, a salesperson or a broker-salesperson, the regular
business name of the individual, partnership, firm or corporate broker through
whom that person is licensed shall appear in larger print or be displayed in a
more prominent manner than the name of the referral agent, salesperson or
broker-salesperson.
2. Where a
webpage on the worldwide web established by a referral agent, a salesperson, a
broker-salesperson, or a team of such licensees is not linked electronically to
the webpage of the broker through whom the person or team is licensed, the
webpage shall display the telephone number and may display the street address
of the licensed brokerage office from which the individual or team operates as
real estate licensees. That information shall appear in wording as large as the
predominant size wording on the webpage.
3. Where a webpage of an individual or team
is linked electronically to the webpage of the broker through whom such person
or persons are licensed, the webpage of the nonbroker licensee(s) shall display
information which clearly indicates how to link to the broker. That information
shall appear in wording as large as the predominant size wording on the
webpage.
(c) All
advertising, with the exception of lawn signs placed on residential properties
containing four or fewer units, shall clearly indicate after the licensee's
regular business name that the advertising licensee is engaged in the real
estate brokerage business. Except as prescribed by
45:15-17(j),
examples of permissible language shall include, but are not limited to,
"Realtor," "Realtist," "real estate broker," "broker," or "real estate agency".
Examples of prohibited language when used alone shall include, but are not
limited to, "realty," "real estate," "land sales," and "land investments." This
provision shall not apply when the word "agency" appears in the advertisement
as part of the licensee's regular business name or when the licensee has legal
or equitable ownership of the property.
(d) Any advertising which contains a home
telephone number, cell-phone number, beeper or pager number, home fax number,
or e-mail address of an individual referral agent, salesperson or
broker-salesperson, or a team of such licensees, shall also include the
telephone number and may include the street address of the licensed brokerage
office from which the advertising licensee(s) operate. All such advertising
shall also contain language identifying each number included in the
advertising. For example, a home telephone number may be followed or preceded
by the word "home" or the abbreviation "res."
1. No advertising shall represent that a
location is a place at which the business of a real estate licensee is
conducted unless that location is the licensed main office or a licensed branch
office of the broker through whom the advertising licensee is licensed.
Referral agents, salespersons and broker-salespersons shall not include in
their advertisements any reference to a "home office."
(e) The business card of any licensed
referral agent shall indicate that this licensee is a referral agent by the use
of the words referral agent or referral associate. The business card of any
licensed salesperson shall indicate that this licensee is a salesperson by the
use of the words salesperson or sales representative, or sales associate, or
where permitted by law, realtor-associate or realtist associate. The business
card of any licensed broker-salesperson shall indicate that this licensee is a
broker-salesperson by the use of the words broker-associate, associate broker,
realtor-associate or broker-salespersons. The business card of any licensed
broker shall indicate that this licensee is a broker by use of the word broker
or, where permitted by law, Realtor or Realtist.
(f) Any advertising which refers to amounts
of down payment, monthly payment, or carrying charges, or which indicates that
a mortgage is obtainable (where the mortgage referred to is not already a lien
against the premises advertised), shall contain the words "to a qualified
buyer".
(g) Any advertisement which
sets forth amounts of down payment, monthly payment, carrying charges, taxes or
mortgage money obtainable shall contain appropriate qualifying words such as
"approximate" or "estimated," which qualifying words shall be clearly
associated with the amounts set forth. If such amounts are mentioned the broker
shall maintain written proof of the validity of these statements in the
broker's files. Such written proof shall be maintained for a period of 12
months from the date upon which an advertisement containing such references
shall have last appeared in any publication.
(h) With the exception of magazine or
newspaper advertisements published under municipality headings, any
advertisement for the sale, exchange or rental of real property, or any
interest therein, shall designate the geographical area containing that
property by specifying the municipality within which that property is
located.
(i) No licensed
individual, limited or general partnership, firm or corporation shall advertise
or use any form of application or make any inquiry which expresses directly or
indirectly any limitation, specification or discrimination as to race,
religion, creed, color, sex, affectional or sexual orientation, marital status,
national origin, ancestry or as to whether a person has a disability as that
term is defined in
11:5-6.4(k).
(j) Any use of an insignia, emblem, logo,
trade name or other form of identification in any advertising or other public
utterance, either by a single licensee or any group of licensees, which
suggests or otherwise implies common ownership or common management among such
licensees, shall be prohibited except in the case of branch offices controlled
by a single broker or licensee and duly licensed as branch offices pursuant to
the provision of
45:1-1 et seq. Nothing herein
provided is intended to preclude or inhibit the use, advertising or display of
any insignia, emblem, logo or trade name of any bona fide trade association by
any licensee provided that such licensee is a member of such trade association.
1. Any franchised licensee using in any
advertising the trade name of a franchisor shall include in such advertising in
a manner reasonably calculated to attract the attention of the public the
franchised licensee's regular business name.
2. Any licensee including the franchisor
using the trade name of franchisor in any advertising shall also include in a
manner reasonably calculated to attract the attention of the public the
following legend or a substantially similar legend: "each office is
independently owned and operated", except in the following categories of
advertising:
i. "For sale" signs located on
the premises of specific properties for sale;
ii. Small "spot" classified advertising by a
licensee in newspapers, magazines or other publications advertising properties.
A small spot classified advertisement is defined as an advertisement which is
no more than one column wide and 20 lines long and which describes no more than
two properties; a line is defined as a standard newspaper classified
advertising line of the newspaper, magazine or other publication in which the
advertisement is published;
iii.
Business cards; and
iv. Advertising
placed or distributed by offices which are wholly owned by the franchisor,
which contains the office address and contains language which identifies the
office as being wholly owned or the franchisor.
3. The intent of this subsection is to
further promote the general purpose of the Real Estate License Act of ensuring
that all individuals, firms or corporations are clearly identifiable to the
public as the licensed brokers who are financially and otherwise responsible to
the consuming public for their real estate brokerage activities. It is not the
intent of this subsection to limit or otherwise inhibit the operation of branch
offices as set forth in
45:15-12 and sections 18 and 19 of
this subchapter, nor is it the intent of this subsection to prevent the
franchising of any group of licensees provided such franchising or other
association is not inconsistent with the purpose of the Real Estate License Act
as expressed herein.
(k)
Any advertising by any licensed individual, partnership, firm or corporation
referring generally to membership in any real estate multiple listing service
operation shall specify the complete name of the listing service in which
membership is held, except in the following categories of advertising:
1. "For sale" signs and small "spot"
classified advertising of any licensee as described in (j) above;
2. Business cards;
3. All business signs.
(l) Any home warranty offer contained in any
advertisement shall comply with all Federal and State warranty legislation,
including the New Home Warranty and Builder's Registration Act, P.L. 1977,
c.467, 46:3B-1 et seq., and the
Magnuson-Moss Warranty Act, P.L. 93-637,
15
U.S.C. §§
2301 et seq. Such
advertising shall specify clearly whether the warranty is by inspection or
non-inspection of the premises, whether the warranty is mandatory, and who is
responsible for payment for the warranty. No advertisement shall contain an
offer for a warranty unless a warranty may be secured for the property being
advertised.
(m) Except as herein
provided, licensees may include offers of free, discounted or other services or
products in advertisements or promotional material. No offering of free,
discounted or other services or products, including the offering of a free
appraisal, shall be made by a real estate licensee in any advertisement or
promotional material or otherwise where the promotion or offering involves a
lottery, a contest, a game or a drawing, or the offering of a lot or parcel or
lots or parcels, or where the consumer is required to enter into a sale,
listing or other real estate contract as a condition of the promotion or offer.
1. Nothing herein shall be construed as
prohibiting the use of such words as "included" or "included in the purchase
price" in reference to items included by the owner in the sale of any real
property or interest therein.
2.
The prohibition upon licensees making offerings of free, discounted or other
services or products as set forth in (m) above applies to all such offerings
which confer a monetary benefit upon consumers. Examples of free or discounted
products or services which would be prohibited if offered in a manner
proscribed by (m) above include free or subsidized homeowners warranties,
property, radon and pest inspections, surveys, mortgage fees, offers to pay
other costs typically incurred by parties to real estate transactions, and
coupons offering discounts on commissions charged by brokerage firms.
3. "Appraisal" as used herein is given its
technical meaning as a study and analysis by an appraiser authorized by law to
perform appraisals of New Jersey real estate to ascertain fair market value by
using a process in which all factors that would fix price in the market place
must be considered. A comparative market analysis or study is not an appraisal
as herein defined. Any written comparative market study or analysis (CMA)
provided by a licensee to a consumer shall include a statement indicating that
the CMA is not an appraisal and should not be considered the equivalent of an
appraisal. The said statement shall appear in print as large as the predominant
size print in any writing reporting the results of the CMA.
4. Subject to (m) above, whenever a licensee
participates in a promotion or offering of free, discounted, or other services
or products which confers upon the recipient a monetary benefit of greater than
token value, which for the purposes of this rule shall mean a value of more
than $ 5.00 retail, the licensee shall provide written disclosure to the
recipient of the promotional material or offering. The disclosure shall state
in a clear and conspicuous manner:
i. That a
consumer is not required to enter into any sale, listing or other real estate
contract as a condition of their receipt and use of the free, discounted or
other services or products included in the promotion or offer;
ii. Whether the consumer is required to
perform any action to qualify to receive the free, discounted or other services
or products offered and, if so, what specific action(s) the consumer must
perform in order to do so. For the purposes of this paragraph, a consumer's
attendance at any listing presentation, informational session or other meeting
is considered to be an action by the consumer; and
iii. In the event that delivery of the
offered services or products does not occur at the time that the disclosure is
provided to the consumer, the date by which the services or products will be
delivered to the consumer if the offer is accepted. If the delivery date is
unknown to the licensee at the time the offer or promotion is extended to the
consumer, the written disclosure to be provided by the licensee to the consumer
shall so state.
5. In
the event that a licensee has received, or will receive, compensation for
participating in a promotion or offering of free, discounted, or other services
or products, the disclosure required under (m)4 above shall also state the
compensation the licensee has received or will receive. Should the Real Estate
Settlement Procedures Act of 1974,
12 U.S.C. §§
2601 et seq., be applicable to the
arrangement between the broker and the person paying the compensation to the
broker, the disclosure shall be in the form and substance required by that
Act.
6. The written disclosure
referenced in (m)4 and 5 above shall be provided to consumers no later than
when the promotion or offer is extended by the licensee to the consumer.
i. For the purposes of this subsection, an
offer or promotion is extended to a consumer when the free or discounted
product or service is delivered to the consumer, or when written confirmation
of the consumer's right to receive the free or discounted product or service at
some future time is delivered to the consumer.
7. No licensee may utilize a marketing or
promotional program which requires, as a condition of the consumer's receipt of
a free or discounted product or service, the taking of any action by the
consumer prior to the delivery of the disclosure(s) referenced in (m)4 and 5
above other than an action necessary to accomplish the delivery of the
disclosure to the consumer.
(n) No licensee shall publish or cause to be
published any advertisement or place any sign which makes reference to the
availability of a specific property which is exclusively listed for sale by
another broker unless the licensee obtains the prior written consent of the
broker with whom the property is exclusively listed. Such consent shall not be
given or withheld by the listing broker without the knowledge of the owner.
1. With regard to information on listings
disseminated through the Internet by licensees other than the listing broker,
listing brokers shall be deemed to have given the consent referred to in (n)
above with the knowledge of the owner where:
i. A written listing agreement contains the
seller's authorization for information on the listing to be posted on the
website of the broker, or of a multiple listing service to which the broker
belongs, or of another party to which the broker or such an MLS submits
information on listings; and
ii.
The website on which the listing information shall initially appear has
instituted no measures to prevent other parties with websites from utilizing an
electronic link to enable consumers to view that information while remaining in
the website of the other party.
(o) No licensee shall indicate in any
advertisement that a property has been sold, or that they participated in the
sale of a property, until a closing has occurred at which title to the property
was transferred from the seller to the buyer.
1. For the purposes of this subsection, the
term "advertisement" shall include communications to other licensees through
notices submitted to a multiple listing service or otherwise.
2. In the time period after a contract
prepared by a licensee emerges from Attorney Review or a contract not subject
to Attorney Review is fully executed and delivered to all parties, but before a
closing occurs at which title is transferred, unless such a contract is
canceled and the seller authorizes the listing broker to renew efforts to
market the property, any advertisement of the property which is the subject of
the contract shall include the term "under contract."
(p) Advertisements by licensees may, but are
not required to, include a statement indicating that the advertiser is licensed
by the New Jersey Real Estate Commission. Any advertisement by a licensee that
includes a reference to licensure by the New Jersey Real Estate Commission
shall immediately thereafter also include the following statement: "Licensure
does not imply endorsement," which statement shall be included in the
advertisement in a clear and conspicuous manner.
1. The foregoing shall not apply to the
displays which, pursuant to
45:15-12, are required to
conspicuously appear on the exterior of every place of business maintained by
New Jersey real estate brokers and to include the name of the broker and, in
the case of business entities licensed as brokers, the name of the individual
licensed as its authorized broker, and the words "Licensed Real Estate
Broker."
(q) Any
advertisement which includes any reference to a commission rate or compensation
amount charged by the advertising licensee's brokerage firm or by one or more
other brokerage firms shall also include the following statement: "In New
Jersey commissions are negotiable." The said statement shall be included in the
advertisement in a clear and conspicuous manner.
(r) No advertisement shall contain false,
misleading or deceptive claims or misrepresentations. In all advertisements
which make express or implied claims that are likely to be misleading in the
absence of certain qualifying information such qualifying information shall be
disclosed in the advertisement in a clear and conspicuous manner.
(s) No person licensed as a referral agent
shall include in any advertisement any content stating or implying that he or
she is authorized to engage in real estate brokerage activity beyond that which
he or she is permitted under
45:15-3 or
11:5-6.1 0.
(t) On all advertisements, except business
cards, referral agents shall include the following statement in a clear and
conspicuous manner: Services limited to referring prospects to
broker.
