From the Mailbag . . .
Identifying Listing Agents/Firms

By Miriam J. Baer, Assistant Director of Legal Services

Q:    I belong to a listing service which permits me to print listing sheets without the name of the listing agent and listing firm. May I create a cover sheet showing my name and company, put these sheets in a package and mail them to a prospective purchaser who has indicated an interest in retaining our firm?

A:    Maybe not. The Real Estate License Law prohibits a licensee from misrepresenting material facts and misleading clients and customers as to whom the licensee represents. Therefore, it is improper for a licensee to make it appear that another firm's listings are his or her own. If a licensee provides a prospective purchaser with property data sheets that do not identify the listing agent or firm, and instead provides a cover sheet that states or implies that the properties are the licensee's when they are not, the licensee's conduct is misleading.

    There could be circumstances, however, where it would not be misleading to provide a buyer with property data sheets that do not identify the listing agent. For example, if the licensee makes it clear on a cover sheet that the properties described are not the licensee's listings, then no misrepresentation has occurred.

    In determining whether a violation has occurred, the Commission's legal staff will evaluate whether a reasonable recipient of such information would mistakenly believe that the property described is listed by the licensee who provided the data sheets. If so, the legal staff could pursue disciplinary action.

    Consider the following common scenario. A licensee provides a buyer-client with property data sheets for each of the properties the licensee intends to show the client that day. The data sheets do not identify the listing agent/firm. However, the licensee explains that the properties are not listed by his or her firm, and then takes the buyer to tour each property. At each of the subject properties, the listing agent/firm's "FOR SALE" sign is in the yard and the listing agent's promotional literature is inside. Here, no violation has occurred: an ordinary, reasonable buyer would not mistakenly believe that the properties are listed by the buyer agent.

    While there are circumstances when the omission of the listing agent and firm from a property data sheet does not violate the law, inclusion of this information will eliminate the possibility of confusion.