December 13, 2024
Understanding and adhering to Washington State's real estate advertising regulations is an essential responsibility for every licensed and managing broker. Compliance not only protects consumers and preserves the industry's integrity but also safeguards professionals from costly sanctions, civil liability, or damage to their reputations.
Real estate advertising in Washington is governed by several laws and regulations, including the Real Estate Licensing Law (RCW 18.85), the Real Estate Brokerage Relationships Act (RCW 18.86), and rules found in WAC 308-124 through 308-124I. Additional applicable statutes include the Uniform Regulation of Business and Professions Act (RCW 18.235), the Consumer Protection Act (RCW 19.86.020), and the Washington Fair Housing law (RCW 49.60.222). The Department of Licensing (DOL) requires industry professionals to comply with these standards. Failure to do so may result in advisory letters, administrative penalties, or even referrals for criminal or civil action.
Misleading or non-compliant advertising can draw DOL sanctions and potentially lead to civil liability if consumers are harmed. Accuracy, transparency, and proper attribution of property information are vital. Firms should have clear, well-communicated policies and training programs to ensure every licensee understands and adheres to these rules.
Advertising covers any activity or notices promoting a broker's professional services or property. This includes printed materials, websites, social media pages, emails, text messages, open houses, billboards, and more. Before advertising a property as available, sold, or otherwise represented, industry professionals must have written authorization from the property owner or their lawful representative. Membership in a multiple listing service (MLS) may grant certain sharing permissions, but it remains the licensee's responsibility to secure sufficient written authority.
All real estate advertisements must clearly display the firm's licensed name. This requirement ensures that a reasonable consumer can identify the firm without ambiguity. A mere logo or web address does not meet this requirement. Firm names cannot be truncated, abbreviated (unless commonly understood, like "Inc."), or partially used. If the firm operates under a "doing business as" (DBA) name or holds multiple assumed names, any one of those fully licensed assumed names may be used in advertising. Licensed names must appear in a manner that is easily noticed and understood.
Firms can obtain assumed name licenses from the DOL, such as a DBA or team name, which can be used as a substitute for the firm's original licensed name. The assumed name must appear fully and accurately in advertisements. Any attempt to combine partial sections of the original licensed name and the assumed name without proper licensing is not permitted.
When advertising online, each standalone unit of content (such as an individual webpage, email message, social media post, or banner ad) must display the firm's licensed name and the broker's or managing broker's licensed name. This is required until an agency relationship is established with a buyer or seller. Once the agency relationship exists, the requirement to disclose these names in every online advertising message ceases.
If a licensee owns or controls the content on a website, every viewable page should include the firm's and broker's licensed names. In formats like newsgroups, discussion lists, or bulletin boards, disclose the firm and broker's names at the beginning or end of each message. On social media, the name disclosures should be prominently displayed—no more than one click away—from the main viewable page. If you use multimedia advertising or banner ads, the ad should either contain the licensed names directly or link to a webpage with full disclosure just one click away.
Licensees must avoid any statement that is false, deceptive, or misleading. Ignorance is not a defense. If a claim could have been investigated or verified through reasonable care, the broker remains responsible. DOL evaluates both the literal meaning and the general impression of advertising. Even if no consumer was actually misled, any advertisement capable of misleading a reasonable consumer could lead to DOL action.
Advertisements, especially those that remain active for extended periods (like business cards, signage, or online listings), may become outdated. If circumstances change—such as a roof's condition deteriorating or a broker no longer holding the MLS listing record—licensees must update or remove the advertisement to avoid misleading the public.
Do not use logos, imagery, or references that imply endorsement by a person, team, or organization without their written approval. Unauthorized use of a sports team's logo, for instance, suggests an endorsement that does not exist.
Offers and incentives advertised must align with the actual terms provided to consumers. Disclosures like "terms and conditions apply" do not excuse material changes to the promised incentives.
Incentive details must be readily available and clearly explained before the consumer agrees to services.
Only use images, text, graphs, or other creative works that you own or have permission to use. Unauthorized use can lead to civil claims for damages. Always secure rights or licenses for the content included in your advertising.
Firms can reduce their risk by implementing clear advertising guidelines, conducting regular training, and reviewing marketing materials for compliance. Confirm the accuracy of every claim you make and stand ready to substantiate it if needed. By maintaining transparency, securing proper authorizations, and ensuring that all names and claims are accurate, licensees protect themselves, their clients, and the broader reputation of the industry.
Staying informed and attentive to details in advertising is essential. Compliant advertising builds trust, reduces legal exposure, and supports a healthier, more professional real estate marketplace.