Q: If I post on social media the opportunity to receive a complimentary travel voucher in exchange for requesting a home-value report, is that acceptable as long as I put the requirements of the recipient and the travel information in a document one click away?
A: The one-click rule, cited below, only applies to the requisite firm information, not all required information.
TREC rule 1260-2-.12:
(6) Social Media Advertising
(a) For the purpose of this rule, “social media” means internet-based applications or platforms that allow the public to create and share content and information. Examples include, but are not limited to; Facebook, Twitter, Instagram, and LinkedIn.
(b) With regards to social media advertising by licensees, the firm name and firm telephone number listed on file with the Commission must be no more than one click away from the viewable page.
(c) Listing information must be kept current and accurate. This requirement shall apply to “First Generation” advertising as it is placed by the licensee and does not refer to such advertising that may be syndicated or aggregated advertising of the original by third parties outside of the licensee’s control and ability to monitor.
For gifts and pries, the following rules apply.
TREC Rule 1260-2-.33:
(1) A licensee may offer a gift. the prize, or other valuable consideration as an inducement to the purchase, listing, or lease of real estate only if the offer is made:
(a) Under the sponsorship and with the approval of the firm with whom the licensee is affiliated; and
(b) In writing, signed by the licensee, with disclosure, of all pertinent details, including but not limited to:
- accurate specifications of the gift, prize, or other valuable consideration offered;
- fair market value;
- the time and place of delivery; and
- any requirements which must be satisfied by the prospective purchaser or lessor.
Also please be aware that under state law, these gifts may not take the form of cash or be converted into cash in any way (in other words, they cannot trade it info cash or get cash back). The statute states:
“A real estate licensee shall not give or pay cash rebates, cash gifts, or cash prizes in conjunction with any real estate transaction. As part of the Tennessee Real Estate Commission’s general rulemaking authority, the commission may regulate the practices of real estate licensees in regards to gifts, prizes, or rebates that are not otherwise prohibited by law.” Tenn. Code Ann. § 62-13-302(b).
In addition, you should be aware of new rules regarding advertising, which includes advertising offers or gifts.
TREC Rule 1260-2-.12(6):
(5) Gurantees, Claims, and Offers
(a) Unsubstantiated selling claims and misleading statements of inferences are strictly prohibited.
(b) Any offer, guranty, warranty, or the like, made to induce an individual to enter into an agency relationship or contract, must be made in writing and must disclose all pertinent details on the face of such offer or advertisement.