Does Your Social Media Mislead?

Provided By KW Blog
Published By Julie Lane

Are your social media marketing efforts infringing on a corporate trademark? If your marketing efforts are confusing customers—if they are misled to believe that you are affiliated with a known brand because of your URL, Twitter or Facebook name—then you could be liable. At the heart of the matter is an effort to fool customers.

Start by looking at your URL. If you have chosen a URL for your Web site or your blog that is similar to a large corporation, you could be infringing on a trademark—and you could lose your domain name.

Surprisingly, even some large corporations haven’t yet claimed their name in the social media world, including Facebook fan page names and Twitter handles. But that doesn’t mean you can cybersquat on it to win followers or traffic to your sites.

You may build a fast following, but you’ll lose it overnight if the corporation files a Uniform Domain Name Dispute with the Internet Corporation for Assigned Names and Numbers, or files a trademark complaint with the social networking site in question.

You can check on the U.S. Patent and Trademark Office’s online database to determine if a name is trademarked. You can also do a Google search for similar domain names and check to see if there are companies with the name you want to use. Where there are trademarks, it’s wise to choose another domain name.

You can also get into trouble using a corporate trademark in your Meta Tags. The Meta Tag is a code embedded in your Web page that helps search engines identify the content. This issue is finding its way into courts because it drives consumers to your Web site when they are really looking for your competitor’s Web site.

Finally, an emerging area of trademark infringement online is in the area of keyword advertising. You can infringe on a brand’s intellectual property rights if you bid on trademark protected words in your Google ad campaigns. The safest way to avoid a trademark suit in this area is to avoid using a competing real estate company’s name in your keyword campaign, either by bidding on the term or by using it in the ad copy.

The Changing Face of RESPA

Provided By Julie Lane, VP of Legal and Compliance
Source Keller Williams Blog

Come January 1, 2010, the new and improved Real Estate Settlement Procedures Act of 1974 (RESPA) will be fully en force. Considering this is the first sweeping change in the home buying process since 1974, it is worthy of our full attention. The new RESPA means more than new forms-it means major changes in the way real estate closings happen.

The key motive of RESPA’s new rules is to make sure consumers understand loan costs and binding parameters before singing the closing statements.

With mountains of paperwork at the closing table, there is little chance that borrowers are going to spend the many hours necessary to wade through the documents. What’s more, borrowers, especially would-be first-time homeowners, may be intimidated by the process and miss the opportunity to seek competing settlement services that could save them money.

As a real estate broker, here’s what you need to know: the new rules may impact your ability to refer business to title companies, inspectors and others you typically work with as part of the sales process. RESPA wants to make it easier for borrowers to shop for the lowest-cost, most convenient closing services by mandating borrowers receive a written list of settlement service providers. That comprehensive list includes closers, appraisers, real estate brokers, title examiners, attorneys, underwriters, pest inspectors, mortgage insurers, loan processors and other settlement service providers.

Since borrowers will receive a laundry list of competing settlement service providers, they may be inclined to shop around for the best price, even if it only means saving a couple of hundred dollars.

This is the crux of the matter as it relates to real estate practices and comes in the wake of industry abuses. Some in the real estate industry have received kickbacks for referring consumers to mortgage brokers, appraisers and other professionals along the road to homeownership. In some cases, those referrals may not have been in the best interest of the homeowner based on price or serviced provided. In other cases, the real estate agency owned the title firm or the appraisal firm at non-competitive prices.

As we move into 2010, be aware of how you might violate RESPA to avoid any issues. The chief concern is giving the appearance of kickbacks, whether in the form of money, ownership interest, marketing help or other arrangements. There is a fine line between collaboration and violation of RESPA and it can be a complicated issue.

The good news is, HUD announced that that it will be lenient in the first 120 days of enforcement of the new RESPA regulations going into effect January 1, 2010 so long as good faith efforts are made to comply. Still, in order to avoid any confusion, you should consult with an attorney about full compliance with the rules.