There are several agents in my area who have been placing for sale signs in yards with a big SOLD sticker on them. As we know, seeing these types of signs regularly can create the image that the agent is in high-demand and highly successful. The trouble is, the yards belong to their friends and family and the homes never actually sold. They were never even on the market. One of my company's clients found this out and wanted to know if it should be reported. I'm not sure if this actually counts as fraud or not, but it's close. These agents are tricking the public into thinking they're closing all these deals. Opinions? Has anyone seen this before?

You've got something unusual going on if these are properties that HAVE NOT conveyed recently. Several States, including Vermont, have tight rules about "SOLD" Signs. I think most of these rules evolved following a period of abuse.

In Vermont, we are prohibited from displaying any sign that says "SOLD" or "ON DEPOSIT" or "IN ESCROW". And you must remove your regular For Sale sign immediately following the Closing - NOT 3 Days AFTER !

I used to have a nice sign "Topper" that read "On Deposit; but we have others! Used it once for about 3 days before our Real Estate Police (aka Goon Squad) took a Polaroid and sent me a Warning that I'd be fined if it wasn't removed in 48 Hours.

Right now, I know nothing more about the rules of other States; but you're witnessing something highly unusual regardless of what State it's in. If it was closer to Halloween, I'd say Pranksters have picked up a few hundred signs and re-distributed them on unsuspecting properties. It could be something as simple as that !

Vermont, the more I read your posts the more I am glad I don't live there! Good Lord! We can use Pending or Under Contract, but it HAS to be under contract on the MLS. You can not put SOLD up until after it closes, and then only if the new owners say it's okay.

To the OP, yes I think this should be reported.

Local MLS rules here determine if and when a sign can be placed in a yard. Check your local rules, or have your board get a legal interpretation if it's ambiguous.
I have asked my board about a sign recently and got a legal interpretation.

Now, now Perky. You don’t want to get me in trouble with the Vermont Tourist Bureau Police, DO YOU ?

Population wise, Vermont IS THE SMALLEST STATE. Of the roughly 305,000,000 people in the US, only 600,000 live in Vermont; or 0.002 of the Total. That’s less than 1/5 of 1%. Yet, we have TWO (2) Senators and ONE Whole (1) US. Representative. Pretty cool, heh ?

Less than 50% of our Residents were born here; including Yours Truly. I’ve been around the World twice; but this is where I’m going to be buried. For Real Estate, we have a lot of CHURNING. A lot of people come from elsewhere. FlatLanders usually come, stay 3 to 5 years and then go back where they came from. People arrive unprepared. This can be a very harsh environment. Time slows down. Marriage Partners discover that they don't like one another. The economy is always weak. We chew them up; take their money; and spit them out. Most of my Transactions involve people from Out-of State or OUT-OF-COUNTRY. We’re on the International Border. In case of a Canadian Invasion, we’re right on the Front Line.

Vermont IS a very nice place to reside. We have no Earthquakes; Volcanoes; Mudslides; Hurricanes; Tornados; Drive by Shootings; Floods; Car Jackings; Riots; or Air Pollution (unless you count the smell of Cow Manure or boiling Maple Syrup); BUT we do have this Legislature comprised of Politicians who have a proclivity for the Bizarre.

Vermont is somewhat of an Artificial Creation. It became the 14th State only because those Scallywags in Concord, New Hampshire and Albany, New York started squabbling over Vermont and making overlapping claims on the Territory during the 1780s. Vermonters decided that they didn’t kick out the Brits only to have these local NH and NY Weasels come in and take over after the Revolution. Vermont first tried its hand at being an Independent Republic for a while (ala Texas); but finally joined the Union in 1791, with the SAME representation in the Senate as its 13 Big Brothers.

I’d like to say When in Rome, do as the Romans; But in Vermont it’s more like When in Vermont, do as the imported New Yorkers !

As you now know, the Weasels did come and did take over anyway. Bernie Sanders, Peter Welch and Howard Dean . . . . ALL New Yorkers ! So the Scallywags are now here amongst us and they have taken over ! The Scallywags are US ! And that's how we got where we are!

Thanks for Reading !

jhanson: Report it to the local association and/or MLS and email them photos of the signs and indicate the day the photos were taken. I wouldn't tolerate this if I saw someone doing it in my area.

If they are a REALTOR they have to be truthful in their advertising as per the code of ethics. If they didn't sell the house, they can't advertise that they sold it.

That's probably how I'd pursue it.

Then again, they could probably say "I never said that I sold it...I just pointed out that at one point it has been sold"...then it's up to the ethics committee... who knows...

Rules, Reports, Fines... yeah its all a good civilized way. What your talking about are Bandit Signs. I get out da car and give em a good kick with my foot. Then I scope the junk up and toss em in a dumpster. Sometimes I call and say "Hey I just pulled 5 of your signs before the sun came up the next day, Thanks for playing."

They rarely come back.

I don't think it's borderline fraud. I think it's full tilt genuine all American fraud. Report it!

Fraud is fraud. Period. Personally, I wouldn't have any problems reporting something like that, especially if it was hurting my business because someone else was doing something that was totally unethical. And that is what it is. They are lying, misrepresenting their abilities, and possibly creating a negative feeling towards all other real estate agents with creating the thought that this is normal practice.

[quote=Vermont007]

Vermont IS a very nice place to reside. We have no Earthquakes; Volcanoes; Mudslides; Hurricanes; Tornados; Drive by Shootings; Floods; Car Jackings; Riots; or Air Pollution (unless you count the smell of Cow Manure or boiling Maple Syrup)
[/quote]

You forgot to mention the 10 months of winter and the fact that every sidewalk in the state is rolled up at 4 p.m. every afternoon :grin:


John from Boston

There's more Night Life here than in Moose Jaw, Saskatchewan. Just not the same level of Action.

What is a Sidewalk ?

Got to love Vermont007's humor!

To the point about sold signs I will add this: I belong to 2 ML Services; in one it is common practice to add a "SOLD" rider once all the contingencies are satisfied and we are waiting only on transfer of title, in the other no one places the "SOLD" rider till after transfer of title (and with the new owner's permission).

From what I know in Illinois you can put up a "sold" sign anytime you want. I don't believe any specific rules exist. Some clients of mine request a sold sign the minute it's under contract. I try to discourage this since no one will call me about the property if a sold sign is hanging there.

Thats completely bogus.

Realistically though: neighbors talk. You don't think the next door neighbor hasn't asked the home owner what the deal is?

And what is the neighbor going to do? They'll tell their friends/family about the shyster trying to con people to make themselves look like they are doing a lot.

The person may pick up some people driving through - but the damage to their reputation long term will be tough to overcome as a con man.

I not only think it is wrong/unethical/fraud. I will not put an under contract rider on a sign since I am sooo scared I will somehow put a jinx on it!

I feel, and I am sure many will agree, that we need to report rule breakers to our associations. We must either drive the unethical out of our business or get them to reform their ways. It is both to protect the public and to protect/improve all of our reputations as RE professionals.

I'm with liz2sell-sometimes you have to break it down like you are talking to a kindergartner-When you say you did something you did not do it's called lying.

REAL REALTORS DON'T LIE!

ps.

Take some digital pics and send them to your board!

That is not fraud. No reliance and no damages.

Violation of DRE advertising rules and some local board rules as well.

@perky and vermont

Vermont's state motto.. "Freedom and Unity" :)

in little tiny letters under it...

"except with respect to REALOTR signs!"

:-)
Joe

LOL when I read "no earthquakes no floods" etc I thought, "no summer either."

True; But that is also changing ! With Global Warming, the snow now melts by early May and it doesn't even come back until October ! Climate Change has also brought us temperatures that spike right up into the low 80s a couple times during July ! (most years).

Of course, in the event of an invasion by the Canadians, we are still right there on the Front Line! Sounds Silly, but few Americans know that the Northern most Battle of the Civil War was fought up here in St. Albans, in 1864, when the Rebs came around from the north and snuck in a back door through Quebec. So it's clear that we have to always be on guard when we're in a thawed condition. It's always very tense here !