Following real estate advertising rules is crucial for protecting consumers, building trust, and maintaining a reputable standing in the industry. This guide explores the legal regulations and ethical guidelines regarding North Carolina’s real estate advertising rules.
Key Takeaways
- Real estate advertising in North Carolina must adhere to federal, state, and NAR regulations, including the Fair Housing Act and Truth in Advertising laws. These ensure ads are non-discriminatory and truthful.
- North Carolina requires all real estate ads to clearly identify the broker and brokerage, with firm names immediately visible. This ensures that there are no “blind ads” that omit affiliation.
- Misleading information, such as exaggerated property descriptions, non-compliance with Fair Housing laws, and omitting key details, can lead to penalties. Descriptions should be honest, inclusive, and accurate.
- Using neutral language and adhering to compliance checks will help create engaging yet fair advertising that appeals to a broad audience.
Importance of Compliance in Real Estate Advertising
North Carolina has strict advertising rules for real estate professionals.
As a real estate broker, you must follow national and state-level laws. National Association of REALTORS® (NAR) members are also called to follow the NAR Code of Ethics and advertising regulations. Here are key regulations you must know as a North Carolina real estate broker.
Key Regulations Governing Real Estate Advertising in North Carolina
What are the laws and regulations surrounding real estate advertising? Let’s look at federal, state, and NAR regulations.
Federal regulations
Federal laws set the foundation for fairness and truthfulness in real estate advertising.
- Fair Housing Act: This federal act prohibits discriminatory language in advertising based on race, color, national origin, religion, sex, familial status, or disability. Ads in North Carolina must strictly follow this law, ensuring no preferential or exclusive language is used.
- Truth in Advertising Laws: National advertising laws, enforced by the Federal Trade Commission (FTC), require all advertisements to be truthful, non-misleading, and substantiated with factual evidence.
North Carolina-specific regulations
The North Carolina Real Estate Commission (NCREC) has its own real estate advertising laws that supplement federal standards. Here are a few that brokers need to follow.
Broker identification and firm name: All advertisements and social media posts must clearly display the name of the brokerage firm with which the broker is affiliated. This requirement ensures transparency and prevents “blind ads,” where the broker’s affiliation is not disclosed. The NCREC does not recognize a “one-click” rule; the firm’s name should be immediately visible without additional clicks.
Broker-in-charge consent: Brokers must obtain consent from their Broker-in-Charge (BIC) before advertising any brokerage services or properties. The BIC is responsible for all advertising conducted by affiliated brokers, including online and social media platforms.
Legal name usage: Brokers should use their legal names in advertisements. Nicknames are permissible if they are commonly associated with the legal name and do not cause confusion. For example, using “Bill” for “William” is acceptable.
Adhering to these standards helps maintain professionalism and public trust in the North Carolina real estate industry. For detailed information, refer to the NCREC’s official guidelines and publications.
National Association of Realtors Code of Ethics & Advertising Policy
The National Association of REALTORs® (NAR) Code of Ethics is nationally recognized and sets a clear framework for ethical advertising in real estate. Even if you’re not a REALTOR®, these are the industry standards of practice. Follow these rules to stay out of trouble.
Article 12 addresses the need for honesty and truthfulness in all real estate marketing and advertisements. For example, REALTORS® must disclose the firm’s name when advertising real estate services or listed property in any medium. Advertising taglines like “The No. 1 Real Estate Agent For You” could violate Article 12—unless the REALTOR® actually is the number one broker and can prove it.
NAR’s Internet Advertising Policy requires a REALTOR® to provide the following information when marketing properties or services.
- the name of the REALTOR®
- the name of the brokerage with which the REALTOR® is affiliated as that brokerage name is legally registered
- the city and state/ in which the REALTOR® office is located
- the regulatory jurisdiction(s) in which the REALTOR® holds a brokerage or salesperson license.
Common Mistakes in North Carolina Real Estate Advertising and How to Avoid Them
You may read the text of real estate advertising laws and regulations and think there’s no way you’re breaking any rules. But here are some common mistakes in real estate advertising that happen to the best of brokers.
Misleading Information
Real estate ads should offer an accurate and realistic view of the property. In North Carolina, misleading descriptions or enhanced photos can result in fines and dissatisfied clients.
Example: A broker lists a home in Charlotte as “within minutes of downtown,” though it’s a 25-minute drive. They also use heavily edited photos that brighten up rooms and make them look larger than they are. When potential buyers view the property in person, they may feel misled.
How to Avoid: Use realistic descriptions and approximate distances with care, sticking to phrases like “a short drive” or “easy access to downtown.” Make sure photos are unedited or minimally adjusted to reflect the property’s actual appearance. Virtual tours or 360-degree images can provide transparency and prevent misunderstandings.
Non-compliance with Fair Housing laws
Fair Housing regulations are strict in North Carolina and nationwide. Violations can occur when language or imagery suggests a preference for specific demographics.
Example: A broker promotes a Raleigh property in an ad as “perfect for young families” and uses images that exclusively feature families with children. While the intent may be innocent, this language and imagery could be viewed as discriminatory, potentially excluding single buyers or older adults, thereby violating Fair Housing laws.
How to Avoid: Avoid phrases that imply preference or exclusion, such as “perfect for young families” or “ideal for professionals.” Instead, use neutral language like “suitable for a range of lifestyles” or “great for entertaining.” For imagery, choose diverse photos that appeal to a broad audience and include a mix of settings and demographics.
Overstating property features
Exaggerating property features is a common pitfall that can lead to client dissatisfaction and even legal repercussions.
Example: A broker lists a property in Asheville as having “spectacular mountain views,” even though nearby buildings partially obstruct the view. This misrepresentation may disappoint buyers and damage the agent’s credibility if they feel the description was misleading.
How to Avoid: Be specific and honest in descriptions. Instead of “spectacular mountain views,” a more accurate description would be “partial mountain views.” It’s always better to understate than to exaggerate; let the property’s actual features impress buyers when they visit.
Omitting key details
In North Carolina, failing to disclose essential details, such as HOA fees or property restrictions, can lead to misunderstandings and disputes.
Example: A broker markets a condo in Wilmington without mentioning that it has a monthly HOA fee. After viewing the property, a buyer is interested but feels misled when they learn of the added cost, and the deal falls through.
How to Avoid: Include all relevant details in listings, especially fees, restrictions, or mandatory disclosures. Transparency builds trust and helps buyers make informed decisions from the start. To ensure clear communication, you can use phrases like “monthly HOA fees apply” or “property subject to community restrictions.”
Best Practices for Effective and Compliant Advertising in North Carolina
Are you concerned about maintaining that perfect balance between truthful, compliant advertising and text that will excite potential buyers? Also, how do you appeal to your targeted audience while maintaining compliance with Fair Housing Laws? Here are the best practices to consider for real estate advertising.
1. Focus on location and property features
One of the best ways to attract interested buyers without targeting demographics is to center your ad keywords and copy around the property’s location and specific attributes.
Use geographical keywords: Highlight nearby landmarks, neighborhoods, or city names, such as “Home near Uptown Charlotte,” “Close to Raleigh shopping,” or “minutes from Asheville hiking trails.”
Emphasize property characteristics: Rather than focusing on potential buyer types, emphasize the property’s unique qualities. Use phrases like “three-bedroom with large yard,” “newly renovated kitchen,” or “pet-friendly apartment with a private patio.”
This way, your ad speaks to what the property offers, appealing to a broad audience searching for specific features or locations.
2. Use virtual staging responsibly.
Virtual staging tools are increasingly used to improve the appearance of properties for sale. If using virtual staging, be clear that the images have been digitally enhanced. Avoid adding items that significantly alter the perception of the space or lead buyers to expect features that aren’t present.
3. Target based on interests and behavior, not demographics.
Google Ads offers targeting options based on user interests and online behavior without specifying demographic traits like age, gender, or family status.
In-market audiences: Use Google’s “in-market audiences” feature to target people who have recently searched for real estate-related terms, signaling they may be in the market to buy or rent. This method focuses on intent rather than demographics.
Custom intent audiences: Using custom intent audiences, you can specifically target users based on the exact search terms they’ve used, such as “homes in Greensboro,” “move-in ready homes,” or “investment property in North Carolina.” This lets you reach people directly interested in real estate topics without segmenting them by age, income, or other personal traits.
4. Use keywords and ad copy that are inclusive and neutral.
Ad copy and keywords should avoid language that could imply a preference for specific groups or demographics. Phrases like “ideal for young families” or “perfect for single professionals ” could alienate other groups.
Neutral language: Use terms like “open layout great for entertaining,” “close to public transportation,” or “spacious backyard.” These phrases highlight property features without suggesting the type of person or family who might prefer it.
Avoid sensitive terms: Be careful with terms related to demographics (like “family-oriented” or “retiree-friendly”). Instead, focus on broadly appealing lifestyle qualities, such as “quiet, suburban neighborhood” or “vibrant downtown community.”
5. Leverage geo-targeting without demographic bias.
In real estate, location is a primary factor for prospective buyers. Geo-targeting can help you attract buyers interested in a specific area without targeting them based on their demographic profile.
Location targeting: Target your ads to show only in specific geographic regions, such as the city, ZIP code, or neighborhood. For example, target areas around specific North Carolina towns or suburbs where the property is located. This technique keeps the ad relevant without implying who should live there.
Local amenities and lifestyle: Mentioning nearby amenities, like “walking distance to local schools,” “next to a popular coffee shop,” or “close to city parks,” can draw in interested buyers based on their interests or lifestyle, regardless of demographics.
6. Implement Fair Housing compliance checks.
Finally, it’s essential to maintain a routine for auditing your ad copy, keywords, and targeting settings to ensure they align with Fair Housing regulations. Schedule regular reviews of ad settings to confirm no inadvertent targeting exists.
By emphasizing location, property features, and user intent, you can create effective and fair Google ads.
Unethical Real Estate Advertisements Lead to Trouble
If you’re a REALTOR® and publish false, misleading, or deceitful ads, you can be disciplined by the NAR or your local Board of REALTORS®—resulting in fines or ejection from the board. In addition, whether you’re a REALTOR® or not, the injured parties can file lawsuits against you and your brokerage. In addition, the FTC and your state Consumer Protection Agency can investigate your ads and file lawsuits against you and your brokerage if your ads don’t comply with their laws.
Real estate advertising ethics rules can be confusing. Aside from what you can’t advertise, follow these basic rules of thumb:
Only advertise listed properties with authorization from the listing agent.
Identify yourself as a real estate agent and include the name of your brokerage firm on all advertising.
Be honest in your advertising by avoiding exaggerations and misrepresentations about the property.
Real estate advertising ethics require authorization, honesty, and 100% transparency. Stay current on real estate advertising rules and regulations and maintain your real estate license by enrolling in the Superior School of Real Estate’s continuing education courses.
