Using bandit signs as an Agent?

Question

I'm a licensed agent in Maryland, and thinking about using bandit signs to procure wholesale property and/or listings.  Does anyone know if this is legal? I would of course be buying property as a "personal investment" not as a representative or 'agent'.  If a deal is not made for 'personal property' - then it could be listed as a commodity on the market. I would of course disclose that I am an 'agent' at first contact, but also imply that I intend to buy personally.

As per the law (copy & pasted from MAR):

"Maryland law requires that all advertisements include your name (as listed on your pocket card) and the name of the company with which you are affiliated (not simply the company logo). Both names must be meaningfully and conspicuously placed in the ad. While the phrase “meaningful and conspicuous” may seem subjective, we strongly advise members to use a common sense approach to advertising. Remember that the guiding principle for these regulations is to minimize consumer confusion. We recommend that you show your proposed advertising to a neighbor or someone unfamiliar with the real estate industry. If that person is able to quickly identify the licensee and the company for whom the licensee works, the ad would most likely acceptable to the Real Estate Commission. If not, the ad may be considered misleading.

If an individual (personal) telephone number or web address is included in the advertisement, the office telephone number must be listed as well. The purpose for this rule is to provide a consumer with direct access to a broker or manager without the necessity of first contact the agent.

Additionally, both Maryland law and the National Association of REALTORS® (NAR) Code of Ethics prohibit licensees and REALTORS® from advertising in a misleading or untruthful manner. In other words, you must be careful at all times to present a true and accurate picture in your advertising and representations to the public.

With respect to the Equal Housing Opportunity logo, federal law dictates that all advertisements should include the Equal Housing Opportunity logo. Finally, members of NAR may use the REALTOR® logo. For additional information regarding proper usage of the REALTOR® logo, you may go to the NAR website (http://www.realtor.org./) and type “logo” in the search box. I have a feeling if I ask my brokerage

... I guess I answered my own question. Thoughts? Suggestions?

Bill Gulley · Answer

No, a directional sign is not advertising a property to sell or lease, it says only that a house is open.

Any sign set by a Realtor that advertises that a property is for sale or lease must comply with the proper disclosure. Garage sale signs don't count either.

A Bandit sign is a good way to lose your license.

Bandit signs also say something about those who post them, especially when the public is aware that such signs are illegal. It says "Hello, I know I'm illegally advertising, but it's no big deal, I have a house to sell" Okay, if they are willing to break that little law, what other little laws are they willing to break? Does that owner (or worse yet, not the owner) demonstrate honesty, integrity, truth in advertising, are they playing by the rules.....or, are they a bit shady, ignoring what doesn't serve their purpose, are they demonstrating respect for the law and community? You should be able to figure that out. :)

Jeff Morelock · Answer

I'm a licensed agent in Florida and use them from time to time. Florida law requires the same broker office disclosure that MD does. I have had problems with code enforcement - some cities are more strict than others. Lastly, if you're a Realtor, your local board and the national board may take issue.

Jon Holdman · Answer

Sorry, @Doug Pretorius but those signs are not bandit signs.  Read the sign code in your city.  The ones I've read (maybe half a dozen) all include exceptions for a sign like that open house sign and for "for sale" and "for rent" signs on a property.   Its rare to get in trouble for such signs because they're explicitly allowed.

OTOH, sign ordinances typically don't contain exceptions for what investors consider "bandit signs".  Those are banned almost everywhere.

Doug Pretorius · Answer

Talk about a technicality. Everyone knows that an open house sign means that the house is for sale.

Plus, in my city quite a few agents leave directional signs up during the week that say: "[Office Name] For Sale --->"

Doug Pretorius · Answer

Bill Gulley I looked up the sign bylaw specifically for Waterloo (my home city). The laws are slightly different for each city.

All I know is that political signs are almost entirely exempt (although they can't be placed on private property without the owners consent.) So my signs say: "Vote for, We Buy Houses!" LOL ;)

Hank Parater · Answer

@Steve Haight

Brand new at real estate sales. Had my license on inactive for the past two years and just decided to turn it on.  I happen to also be a licensed contractor which is how I pay my bills currently. My intention is to use both licenses to control any (investing) deals front to back.  Meanwhile helping friends and family with buying or selling houses. But with so many ethics, agency, and disclosure laws in the real estate biz, seems often one has to walk a fine line.

Steve Haight · Answer

Hank, seems like everybody that has a re licence is worried about loosing it. Sounds like you are heading more on the investing side of things, how has your real estate sales been? I always act as a principle made more money that way with less worries.

Bill Gulley · Answer

Why not take your point of using bandit signs with what Realtors might do to the judge, see what s/he says. The reason they are called "bandit" signs is because they are illegally posted. That's pretty much it. :)

Hank Parater · Answer

How will anyone/county/ brokers know who I am?  If the sign just says "we buy houses" or "Tom buys houses..Call 555-5555"- who will know if I'm a licensee or not. There are plenty of "we buy houses signs' in my city - Maybe there's people pulling them down from certain places, but they get put back up somewhere else. i highly doubt the county board is calling these numbers to see if the person is licensed or not.

Also, I would have a different phone number than the one associated with my brokerage.

Using bandit signs as an Agent?

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