Real Estate Q&A’s

Find answers to common real estate questions in the Desktop Reference Guide. Your guide to laws, rules and regulations pertaining to real estate.

You’ll find Q&A’s on all kinds of topics including Advertising, Code of Ethics, Data Privacy & Security, Lender’s Escrow Accounts, Point of Sale Inspection and more.

Here’s an example:

Q: I’m confused as to what is and is not acceptable with social media.

ANSWER –

Using social media in connection with your real estate business is a type of advertising and thus is governed by law and professional standards. Minnesota statutes and the REALTORS® Code of Ethics require that a REALTOR® disclose the name of his or her firm in a “reasonable and readily apparent manner.” To meet this requirement, REALTORS® should include the name of their real estate company in their handle or name for social media tools.

Standard of Practice 12-5 of the Code of Ethics states “that disclosing the name of the firm may not be practical in electronic displays of limited information (e.g. “thumbnails”, text messages, “tweets”, etc.). Such displays are exempt from the disclosure requirement established in the Standard of Practice, but only when linked to a display that includes all required disclosures.”

Real estate licensees must also ensure that their social media pages are fully complete under Minnesota law. A “fully complete” media page includes the name of the real estate company to which the agent is licensed. A licensee must also include required disclosures and a direct link to his or her electronic message/homepage. A “direct link” is one that requires only one mouse click to direct consumers to a licensee’s profile page.

Please check with your broker to confirm that your use of social media also comports with any office policy on the matter.

View more Q&A’s in the DESKTOP REFERENCE GUIDE

RESOURCES ON SOCIAL MEDIA: National Association of REALTORS®

• NAR’s Field Guide on Social Networking
• NAR’s Field Guide on Privacy and Security Features in Social Media

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

Brokerage Management Tools

It all starts with the real estate broker. Agents are unable to operate without affiliating themselves with a broker. Association membership flows through the real estate broker. Agents can only be part of the REALTOR® organization if they are affiliated with a broker who is part of the REALTOR® Association. Some licensees dislike that element of the business. Many think because they are independent contractors, that they are “free agents” and are able to do what they want, when they want, and how they want. This is false.

In Minnesota, real estate licensees cannot function without a real estate broker. Although the tax classification of being an independent contractor gives agents some operational autonomy, it is important that both the broker and agent have a clear understanding of the relationship and what is expected from each.

Minnesota state law establishes the framework under which the broker exists. If you’re not familiar with state law you can link to it here. Its not the most exciting reading, but it does provide you with an understanding of the what, where, why, and when of Minnesota real estate.

You can also access the MN REALTORS® Desktop Reference Guide. Annually reviewed and updated, this comprehensive reference guide answers your basic real estate questions, provides links to state and federal laws, and provides context to regulations, rules, and state statutes.

Your MN REALTOR® Association has been focused on providing brokers with educational opportunities to help them better manage their operations. We’ve decided to stray from the “must be CE model” and provide training on issues that will help you grow and sustain your business. In the near future, we’ll be offering a web based opportunity for brokers in Greater MN. Time is a valuable commodity and we understand the challenges brokers face when programs are offered only in the metro.

Increasing professionalism in the real estate industry begins with the broker. Your MN REALTORS® are working to provide brokers with the tools they need to build a successful brokerage.

Chris Galler

Chief Executive Officer

Find more real estate information in the

MN REALTOR® March REsource Magazine.

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

Q: What is the Federal Fair Housing Law?

A: The 1866 Act provides that:

All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, sell, hold, and convey real and personal property.

In 1968 in Jones vs. Mayer, the US Supreme Court held that the 1866 Act Prohibits ALL forms of racial discrimination in real estate, whether committed by government or private parties. Persons suing under the 1866 Act are entitled to recover actual and punitive damages, and their attorneys’ fees and costs.

5 Types of Discrimination Prohibited Under Title VIII

Title VIII is a comprehensive federal fair housing law that addresses not only racial discrimination, but also discrimination on the basis of religion, color, national origin, sex, handicap and family status. Title VIII prohibits five different types of discrimination.

1. refusal to sell or rent, or otherwise making unavailable a dwelling because of a protected classification;
2. discrimination in the terms, conditions or privileges of sale or rental, or in the provision of services in connection therewith;
3. use of advertising that expresses a preference for persons of a particular race, color, religion, sex, national origin, handicap, or familial status;
4. representations of dwelling not available for sale or rent, when in fact the dwelling is available;
5. attempts to induce a person to sell or rent a dwelling by referring to the prospective entry of persons of a particular race, color, sex, religion, national origin, handicap or familial status into the area.

In addition to prohibiting specific practices involving the sale or rental of dwellings, Title VIII also prohibits discrimination in financing of housing, or red lining, as well as discrimination in access to a board of REALTORS®, multiple listing services, or other services, organizations, or facilities that relate to the business of selling or renting dwellings.

Find more common real estate questions and answers in the Desktop Reference Guide.

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.