Social media policies provide risk management for brokers

A social media policy is a must for real estate brokerages.

National Association of REALTORS® (NAR) Associate Counsel Katie Raynolds said a social media policy provides a guideline for employees and agents so they know how the company expects them to represent themselves and the firm online. “A social media policy should remind everyone that state license laws should be followed — even online — and NAR’s Code of Ethics applied as well,” she added.

The policy can be as simple or as detailed as the broker wants. NAR’s Risk Management Committee recently drafted a model policy for brokers to use as an example in their own offices.

“It’s totally up to the brokerage what guidelines they want and how they decide to manage their image and reputation online,” Raynolds said. “Most social media policies are general, reminding agents not to discriminate, not to make disparaging remarks, not to reveal clients’ personal information and what the consequences are in the event you don’t abide by the policy,” she said.

As the popularity of social media continues to grow among consumers, real estate agents increasingly use various social media venues. Todd Carpenter, NAR manager of Social Media, said, “REALTORS® recognize the potential to increase their sphere of influence through social media and are adapting to these networks unlike any other profession. Social media is popular because it’s affordable marketing.”

Carpenter agrees that a social media policy helps alleviate potential mistakes. “Social media policies are good to have in place so people don’t make mistakes. They know what they’re doing ahead of time,” he added.

Jim Crawford, a REALTOR® and an online real estate tech/web coach in Georgia, thinks many brokers are ignoring potential problems by not creating a social media policy.

“Many agents don’t understand that if their online presence mentions real estate, they should watch what they’re saying and they must follow their state real estate commission’s advertising guidelines,” Crawford said.

Crawford believes many brokers are unaware of what agents may be posting online. “Brokers are supposed to review their agents’ advertising but many don’t know what their agents are saying online. If an agent is bad-mouthing a client or asking what he should do because he’s in trouble, there’s a permanent record online. The agent is liable for what he wrote and the broker may be liable as well,” he added.

 “The connection between the broker, what his agents do online and his liability will eventually be determined by the court,” Raynolds said. “But having a clear policy, informing everyone in the office you have a policy and educating them about the policy will go a long way in risk management for the broker.”