The scenario: Successful agent leaves site-sales (large prestige subdivision) brokerage with an associate broker, and form their own shop. AB is now the broker.

The agent sends out a farming letter to all residents in the subdivision comparing her past-year sales totals with the agents who remain at the old brokerage. The agent names names and quotes their sales figures. And asks the question in the farming letter in the form of, "Who would you rather list your home with?"

Is this an ethics violation?

Sure looks borderline; but IF the information is accurate, it's probably okay.

Few will argue with the truth; but I'd still worry about the accuracy.

I am not sure about the ethics part but they might have broken the MLS rules regarding publishing MLS data if they acquired the sales data of the agents from the MLS.

I think it's all in the competitive nature aspect of real estate, but I think it's pretty low, personally.

Article 15 & 16 of the COE spells it out.
By naming other agents, it's a violation, specially if they are having active listings.

I lost track of this thread!

My understanding of the COE Articles is to refrain from false or misleading statements; so this would not be a violation unfortunately.

Broadcasted farming letters CAN reach sellers with active listings with another agent. Farming letters cannot purposely TARGET sellers with active listings of other agents.

BUT, diseminating sold data from MLS probably isn't permissible under most board rules. Sold data can be given to a client, either buyer or seller, but it should not be broadcast to others. The only thing that may get around that prohibition is that the data was sales figures for specific agents, and not actually sold comparables.

Nothing actually came of this whole nasty thing. Like many issues and situations in real estate and real estate agents, guidelines, standards and codes are too murky, and many times mutually exclusionary/conflicting to actually be able to enforce or even figure out what happened, lt alone what should be done.

Sure sounds shady. If anything it could violate an agents privacy rights.

That's on public records here and agents use active, pending/under contract and sold MLS data all the time for their farming area, without using any other agents names.

If they copy the sold data from the tax records they are ok. But if the agent uses the sold data from the MLS they are breaking the rules. What you describe is a fine-able offense in our MLS. The tax records do not have U/C, active, DOM etc.

$500 fine from our mls and we enforce it when we find it.

I quoted the wrong COE Article:
Case #12-16, Copying and Publishing other Brokers’ Advertisements (Adopted April, 1998.)

Wanting to take advantage of the virtual explosion of the World Wide Web, REALTOR® A, who had a respectable level of expertise in computer technology, decided to purchase a Web site design software package and set out to design his own Web site.

Understanding that his site would be greatly enhanced by providing as much information as possible, he decided he would offer two pages of listings; his own and some choice listings of his competitors. Being careful not to present a misleading picture in his advertising, he was very careful to list the company name and phone number of the listing company with each ad of his competitors’ listings.

When REALTOR® B found one of her listings on REALTOR® A’s new Web site, she filed an ethics complaint with the local Association of REALTORS® complaining that REALTOR® A had “blatantly and without authorization of any kind whatsoever advertised my listing on his Internet Web site and in so doing was clearly in violation of Article 12 of the Code of Ethics as interpreted by Standard of Practice 12-4.”

The matter was placed on the agenda of the Grievance Committee. At their next meeting, the Grievance Committee decided that the alleged conduct, if taken at face value, could possibly violate Article 12 and directed the Association’s Executive Officer to schedule an ethics hearing before a Hearing Panel of the Association’s Professional Standards Committee.

At the hearing, REALTOR® B produced a printed copy of the advertisement of her listing which had been placed on REALTOR® A’s Web site. She produced a copy of her listing agreement and a photograph of the property, which matched the information in the ad. She testified that she had never been contacted by REALTOR® A for permission to advertise her listing.

When REALTOR® A presented his case, he showed the hearing panel several examples of REALTORS® providing links to sites with ads for other REALTORS®’ listings. He said he saw no fundamental difference between providing such links and actually advertising other listings on his Web site, especially when he was very careful to also give the listing company’s name and phone number. He went on to argue that REALTOR® B’s clients would be hard pressed to understand REALTOR B’s objection to giving their properties the additional exposure they received on REALTOR® A’s Web site.

Upon the conclusion of all testimony and closing statements, the Hearing Panel met in executive session and decided that while providing a link to listings of other REALTORS® did not violate Article 12, by actually publishing REALTOR® B’s listing on his Web site REALTOR® A was not linking, but instead was advertising (by copying, as opposed to simply providing a link) without authority. In their findings of fact, the Hearing Panel also noted that even if REALTOR® B’s clients might not object to such advertising, the lack of objection could not be assumed and would not relieve REALTOR® A of the obligation to obtain REALTOR® B’s specific authority and consent to advertise her listings.

The Hearing Panel found REALTOR® A in violation of Article 12 of the Code of Ethics.

Here is another ethics case:
Case #15-1: Knowing or Reckless False Statements About Competitors (Adopted Case #23-1 November, 1992. Transferred to Article 15 November, 1994.)

REALTOR® A operated a residential brokerage firm in a highly competitive market area. He frequently used information from the MLS as the basis for comparative ads and to keep close track of his listing and sales activity as well as his competition.

One day, while reviewing MLS data and comparing it to a competitor’s ad, REALTOR® A noticed that REALTOR® Z had used a diagram to demonstrate his market share, contrasting it with those of several other firms. The ad showed that REALTOR® A had listed 10% of the properties in the MLS over the past three months.

REALTOR® A thought this was low. His analysis of MLS data showed his market share was 11%. REALTOR® A filed an ethics complaint against REALTOR® Z citing Article 15 of the Code of Ethics in that REALTOR® Z’s “obviously understated market share claim” was a “misleading statement about competitors.” REALTOR® A’s complaint was considered by the Grievance Committee which determined that an ethics hearing should be held.

At the hearing, REALTOR® Z testified he had always been truthful in his advertising and that all claims were based in fact. He produced an affidavit from the Board’s MLS administrator which indicated that a programming error had resulted in miscalculations and, after careful recomputation, REALTOR® A’s market share over the past three months had been 10.9%. The administrator’s statement noted that this was the first time that information related to REALTOR® A’s listings or sales had been misstated on the system. “I relied on information from the MLS. It’s always been accurate and I had no reason to even suspect it was wrong last month,” said REALTOR® Z in his defense.

The Hearing Panel agreed with REALTOR® Z’s logic, noting that a REALTOR® should be able to rely on generally accurate information from reliable sources. They reasoned that if, on the other hand, the MLS had shown REALTOR® A having, for example, 1% of the market, then REALTOR® Z’s reliance on the information would have been “reckless” because REALTOR® A had generally had a 10–15% market share and a reasonable conclusion would have been that the information from the MLS was seriously flawed.

The Hearing Panel concluded that REALTOR® Z’s comparison with his competitors, while slightly inaccurate, was based on usually accurate and reliable information and had been made in good faith and while technically “misleading,” had not been “knowing” or “reckless”. REALTOR® Z was found not to have violated Article 15.

That information U/C, DOM would not be used, only:

SOLD
12345 Main St. 3 bed, 2 bath, 2 car, date 1/1/2012, $150,000
FOR SALE
12345 Main St. 3 bed, 2 bath, 2 car, $160,000
UNDER CONTRACT etc.
I just can't imagine an MLS being the problem in using this marketing data for a farm area.

The problem with quoting another agent's production based only on the MLS data is that some sales don't show up in the MLS. For instance, if your buyer purchases a FSBO or some new construction homes. Neither are typically reported.

Obviously this deals mostly with buyer sales not listings, but it could be really misleading to state an agent's production only from MLS data. I personally sell several of both types each year so my stats on the MLS are way off.

My biggest pet peeve is when the listing agent sends out postcards stating "they sold it". They DIDN'T SELL IT - I DID. They took the listing, plopped the pictures on the MLS and waited. I then came along with the buyer and put the deal together. So, as soon as it records I run out and put a sign in the yard "xxxx SOLD ANOTHER ONE!" (with permission of the buyer of course). I sold it - they just listed it. Now if they found the buyer too, then yes they sold it.

I remember that one agent used to advertise "participated" in the sale in her advertising. Whether listing or selling agent, she felt she participated and could advertise as such

They will show up in our MLS if the selling broker submits the data:
"Also, MLS will accept property data from the Selling Participant when the Listing Participant is unable or unwilling to provide the information.
The following guidelines apply when sold information is submitted by the selling Participant:
1. After the property has sold and closed, the selling Participant will input the listing as an Active status listing. The listing will initially be input under the selling Participant’s agent and office ID information. Be sure to enter the original Listing Date.

2. Information will be supplied for all required fields.
….....
5. The Selling Broker will be responsible for the accuracy of all data
….....
6. Upon receipt of the Change Form, the RSC office will
….....
d. Change the Compensation field to 0 and the Cooperation field to N.
e. Add “FSBO” in Sold Remarks."