Avoid Costly Mistakes: Essential SNS Guidelines for Real Estate Brokers

With the proliferation of social networking services, platforms such as Instagram and X (formerly Twitter) have become indispensable tools for real estate brokers to attract customers and publicize their services. Many real estate agencies are now focusing on SNS marketing due to the advantages of being able to visually convey the appeal of their properties and reach a wide range of potential customers at low cost.

At the same time, however, there has been a sharp increase in the risk of inflammatory postings and violations of laws and regulations specific to real estate. Not only can inappropriate postings damage a company's image, but in the worst case scenario, they can result in severe penalties such as business suspension or license revocation.

This article provides specific examples of NG posts that real estate brokers should avoid in their SNS operations and offers guidelines for safe use of SNS from a regulatory perspective. The contents of this report can be used as a reference for all those involved in the real estate industry, from sales representatives to management.

Status of SNS Use by Real Estate Brokers and Legal Regulations

Current Status of SNS Marketing in the Real Estate Industry

In recent years, the real estate industry has accelerated the use of SNS marketing to increase the diffusion of property information and reach potential customers, particularly young adults. In particular, Instagram, with its excellent visual appeal, and X (formerly Twitter), with its immediacy, are attracting attention as effective tools for conveying the appeal of properties.

The main advantages for real estate companies to utilize SNS are as follows.

On the other hand, the disadvantages include the time and effort required for operation and the risk of inflammation if posted inappropriately. It is especially important to note that SNS postings are also subject to legal restrictions as real estate advertisements.

Regulations and Guidelines Applicable to SNS Postings

As with print media and websites, real estate advertising regulations apply to SNS postings by real estate brokers. Specifically, the following laws and guidelines are relevant.

1. Building Lots and Buildings Transaction Business Law (Building Lots and Buildings Transaction Business Law)

   • Prohibition of exaggerated advertising, etc. (Article 32)
   • Restrictions on when advertising may begin (Article 33)
   • Obligation to clearly state the mode of transaction (Article 34)

2. Act against Unjustifiable Premiums and Misleading Representations (Act against Unjustifiable Premiums and Misleading Representations)

   • Prohibition of unfair representation

3. Fair Competition Code Concerning Real Estate Representations

   • Clear Indication of Required Labeling Matters
   • Standards for use of specific terms
   • Prohibition of Bait Advertising

According to the opinion of the Metropolitan Area Real Estate Fair Trade Council, property advertisements on SNS must also comply with existing codes, and the posting of previously sold properties may be considered a form of entrapment. Unsubstantiated exaggeration is also prohibited. Although it is possible to provide the required information in the summary or comments section, guidelines specific to SNS have not yet been established.

Penalties for Violations

The following penalties will be imposed for violations of the real estate advertising regulations.

Considering the severity of the penalties, it is essential for real estate brokers to establish appropriate SNS guidelines internally and build a system for checking before posting.

Examples of NG posts that real estate brokers should avoid

The following are examples of what real estate brokers should avoid posting on social networking sites, broken down by category.

Postings that are an invasion of privacy

1. Unauthorized disclosure of client information

   • Posting personal information (name, address, contract amount, etc.) of clients, whether celebrities or ordinary people, without their permission
   • Posting photos of property previews or contract signings without the customer's consent

2. Postings that infringe on the privacy of tenants.

   • Posting photos of the inside of managed properties that show the resident's personal belongings.
   • Posting of identifiable information such as "The person who lives in room (No.) of apartment (No.) of (00) is..." etc.

Such posts are likely to lead to legal problems, and in particular, leaks of information about celebrities are likely to trigger social networking flames, so care should be taken.

Posts that violate laws and regulations

1. Posts that constitute bait and switch advertisements

   • Postings that continue to list properties that have already been sold without deleting them
   • Postings of properties that do not actually exist or properties with which there is no intention of doing business

2. Postings that lack the required information

   • Postings that do not clearly indicate the type of transaction (seller, agent, or broker)
   • Property advertisements that do not include the builder's name or license number

3. Submissions that include exaggeration or misrepresentation

   • Postings that indicate that a "5-minute walk from the station" actually takes more than 10 minutes
   • Use of baseless expressions such as "the best in Japan" and "the highest quality
   • Use of terms that give the impression of being extremely cheap, such as "cheap," "very cheap," and "land value

These postings violate the Building Lots and Buildings Business Law and Real Estate Advertising Regulations, and carry the risk of administrative action and fines.

Postings with high risk of inflammation

1. Postings containing discriminatory or inappropriate expressions

   • Discriminatory expressions based on race, age, gender, occupation, etc.
   • Advertisements containing sexually explicit language

2. Postings that disparage competitors or property owners

   • Direct criticism of competitors such as "Unlike 00 Real Estate, we...
   • Content that criticizes the property owner, such as, "Due to repairs by the landlord..." etc.

3. Political or religious statements

   • Postings supporting a specific political position on a company account
   • Content that endorses or criticizes a particular religion or ideology

These posts, even if they are personal views, may be perceived as the official views of the company and cause unnecessary controversy.

Posts that undermine trust

1. Posts with unstable update frequency

   • Account operations that cease posting for long periods of time
   • Posting patterns that vary in frequency and raise questions about the company's continuity

2. Postings that are exclusively one-sided advertisements

   • Posts that provide only property information or campaign announcements and no useful information for followers
   • One-way posts that do not communicate with users

3. Posts with inappropriate apologies or responses

   • Apology letters that include excuses that seem to shift the blame in the event of a fire
   • Responses that are formulaic and lack sincerity

Although these do not constitute direct regulatory violations, they can significantly damage a company's credibility and lead to a long-term decline in its ability to attract customers.

Lessons Learned from Actual Flame Cases

Let's analyze actual cases of social networking flame wars in the real estate industry and learn lessons from them.

Incident involving the leak of information on a celebrity's search for a new home

Case Overview

In early 2016, a female employee of a real estate brokerage company posted on her private Twitter account that she had guided a celebrity to a new home after giving her personal name. The situation caused a firestorm as an invasion of privacy.

Issue.

1. Disclosure of information about customers (especially celebrities) visiting the store and being served without their consent
2. Lack of awareness of the public scope of SNS (incorrect assumption that "only friends can see it")
3. Lack of understanding of the characteristics of SNS, which make it difficult to delete information once it has spread.

Lessons Learned

1. Customer information is subject to confidentiality obligations under all circumstances and must not be mentioned on social networking sites.
2. Even on private accounts, be very careful when posting information related to your profession
3. Do not have the expectation that the information will not be spread, but post on the premise that it will be made public to the entire world

Inappropriate advertisements can cause a firestorm

Case Summary

A real estate company in Ishikawa Prefecture posted sexually explicit advertisements that included phrases such as "The room is old and your first experience will be delayed" and "Beautiful female college students are welcome! (lol)" and other sexually explicit advertisements were posted on SNS, causing controversy.

Issues

1. Use of sexual or discriminatory expressions
2. Advertising expressions that offend certain demographics
3. Misjudgment of humor that damages the corporate image

Lesson Learned

1. Check advertising expressions by more than one person to ensure that they do not give offensive or discriminatory impressions.
2. Refrain from posting for the sole purpose of "being funny" or "standing out
3. Avoid expressions that have nothing to do with the value of the property.

Reinflammation due to failure to respond with an apology

Case Summary

There was a case in which a real estate company's apology posted after a firestorm was suspected of being a "canned or copied and pasted" apology, and was also flamed again because it contained excusive expressions such as "We have been thoroughly training our employees..." etc.

Problems

1. The apology was written with no sense of sincerity.
2. Including excuses that could be perceived as a shift of responsibility
3. Inadequate crisis management manual

Lessons Learned

1. Apology should be sincere and provide concrete measures for improvement
2. Avoid expressions that could be perceived as excuses
3. Prepare a response manual in advance in the event of a firestorm

Posting guidelines for success on social networking sites

The following are guidelines for real estate brokers to use SNS safely and effectively.

Pre-Posting Checklist

Use the following pre-posting checklist to prevent problematic postings.

In particular, when posting property-related information, be sure to thoroughly manage the contract status to avoid bait advertisements, and be careful to ensure that there are no errors in the terms and conditions of the transaction or the price tag.

Appropriate Posting Content and Frequency

To be successful in social networking, it is important to balance the content and frequency of your posts.

Recommended Posting Content

1. Provide useful information

   • Local information and lifestyle suggestions
   • Explanations of real estate expertise
   • Seasonal housing ideas

2. Balance of property introductions

   • High-quality photos and videos that visually convey the appeal of the property
   • Property descriptions that provide concrete images of living conditions
   • Proper description of necessary display items

3. Transmission of corporate culture

   • Introduction of staff and daily operations
   • Introduction of community contribution activities
   • Expression of company philosophy and values

Recommended posting frequency

• Instagram: 2-3 times a week
• X (formerly Twitter): 3-5 times a week
• Facebook: about twice a week

It is important to find a pace that you can sustain, neither too much nor too little. Also, respond to comments and messages as quickly as possible, and keep two-way communication in mind.

Response Manual for Social Networking Flames

In the unlikely event of a social networking flame war, the following steps should be taken.

1. Initial response (within 24 hours of discovery)

   • Delete or make private the offending post
   • Assess the situation and confirm the facts
   • Report to management and organize a response team

2. Apology (within 1-2 days)

   • Prepare a sincere and specific apology
   • Publication of apology and measures to prevent recurrence
   • Prepare response to inquiries

3. Follow-up (1 week to 1 month)

   • Continuous monitoring of the situation
   • Implementation and announcement of recurrence prevention measures
   • Review of internal training and guidelines

It is important to be careful not to make excuses or shift responsibility in the apology, and to clearly indicate "what went wrong" and "how to improve. In addition, be cautious about responding to comments individually, as it may add fuel to the fire.

Conclusion

While social networking is a powerful marketing tool for real estate brokers, it also poses significant risks if not managed properly. To summarize the information explained in this article:

1. Understanding and complying with laws and regulations

   • Real estate advertisements on SNS are also subject to the Building Lots and Buildings Transaction Business Law, the Law Against Unjustifiable Premiums and Misleading Representations, and the Fair Competition Code.
   • Bait advertisements and exaggerated expressions are strictly prohibited.
   • Penalties for violations are extremely severe, including suspension of business and fines.

2. NG Postings to Avoid

   • Postings that violate customer privacy
   • Inappropriate advertising expressions that violate laws and regulations
   • Discriminatory or sexual expressions that may cause inflammatory risk
   • Irregular updates or one-sided advertising that undermines trust

3. Practical points for success

   • Pre-posting checklist for confirmation
   • Information useful to users and appropriate frequency of posting
   • Prepare a manual for dealing with flame wars

SNS can be a powerful tool for real estate brokers to attract customers if used appropriately due to its ability to spread information. On the other hand, inappropriate use can be a double-edged sword that can instantly damage a company's image. Please refer to the guidelines outlined in this article to minimize risk while implementing effective SNS marketing.

We hope that your company's SNS operations will be successful and lead to quality customer encounters.

Frequently Asked Questions

Q1: What are the required display items for real estate advertising on SNS?

A: The following display items are also required for real estate advertising on SNS .

• Name and license number of the real estate agent
• Property location and price
• Type of transaction (seller, agency, or brokerage)
• Transportation conditions (distance and time from the nearest station, etc.)
• Area and floor plan of the land/building

Q2: How should I handle postings of completed properties?

A: According to the Fair Trade Council, you can post an already-sold property if you clearly state "Sold. However, the indication should be made in a prominent position, such as in the summary section or title. In addition, many companies have a basic policy of deleting the postings to prevent misidentification. Ideally, a system should be in place that allows for automatic contract indication and deletion in conjunction with the property information in the system.

Q3: Is posting on an employee's personal account subject to the regulation?

A: Even if an employee 's personal account is used, any postings related to real estate transactions may be considered as the company's opinion. In particular, never post customer information or privacy-related content. It is important for companies to establish social networking guidelines for employees and to inform them of the risks through regular training.

Q4: What is the initial response in the event of a flame war?

A: The initial response to a flaming incident is as follows

1. Immediately delete or make private the offending post
2. Confirm the facts and report internally
3. Organize an emergency response team if necessary
4. Issue a brief initial statement within 24 hours
5. Continue SNS monitoring and situation assessment

Be careful not to shift responsibility or make excuses for the apology, and release it once the facts are confirmed.

Q5: What should be considered when outsourcing SNS operation?

A: When outsourcing SNS operation, the following points should be noted

1. Confirm that the company is familiar with real estate advertising laws and regulations.
2. Check the information management system (from the viewpoint of customer information protection)
3. Establish an emergency contact system and response flow
4. Establish a pre-approval process for posted content
5. Implement periodic operational reporting and effectiveness measurement

It is also important to include clauses on confidentiality and emergency response in contracts with contractors to clarify where the risks lie.

The latest real estate advertising regulations and guidelines are constantly being updated, so it is advisable to check regularly. If you are unsure about a decision regarding social networking postings, you can minimize the risk by consulting with your company's legal staff, your real estate association, or the Fair Trade Council.

We hope that this article will help you improve your SNS operations and lead to effective customer attraction and safe information dissemination. To improve the transparency and reliability of real estate transactions, be sure to use SNS appropriately.