W. Va. Code R. § 174-1-18

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 174-1-18 - Offer of Consumer Rebates, Inducements and Other Discounts

18.1. A licensee may offer, directly or indirectly, to clients or customers rebates, inducements, or other discounts, if such licensee:

18.1.a. Discloses to the client or customer, in a clear and conspicuous manner and in writing, the terms of any rebate, inducement or other discount offered;

18.1.b. Discloses to the client or customer, in a clear and conspicuous manner and in writing, the fair market value of any rebate, inducement or other discount offered; and

18.1.c. Offers the rebates, inducements or other discounts only under the direct supervision and in the name of the responsible broker.

18.2. No licensee may accept, give or charge any form of undisclosed compensation, consideration, rebate, inducement or other discount to a client or customer.

18.3. Advertisements of lotteries, contests, prizes, certificates, gifts and lots.

18.3.a. An advertisement by a licensee that employs lotteries or contests or that offers prizes, certificates, gifts or free lots shall be under the direct supervision and in the name of the responsible broker and shall contain:

18.3.a.1. A description of each prize, certificate, gift, lot or other valuable consideration offered;

18.3.a.2. The prerequisites for receiving each prize, certificate, gift, lot or other valuable consideration offered;

18.3.a.3. Limitation on the number of prizes, certificates, gifts, lots or other valuable consideration offered;

18.3.a.4. The fair market value of each prize, certificate, gift or lot offered. If advertised, the statement of fair market value shall be in the same size type as the description of the prize, certificate, gift or lot offered. For purposes of this paragraph, ''fair market value'' is the price or value that a prospective buyer would expect to pay, or be charged for, if he/she were to acquire a similar item of like quality and quantity in a retail outlet that offers the item for sale to the general public; and

18.3.a.5. The odds of winning or receiving each prize, certificate, gift or lot offered. If advertised, the statement of odds shall be the same size type as the description of the prize, certificate, gift or lot and shall appear immediately adjacent to the description.

18.3.b. A licensee who offers prizes, certificates, gifts or lots shall maintain records on each offering for five (5) years, and the records shall contain:

18.3.b.1. The number and description of each prize, certificate, gift or lot distributed or awarded;

18.3.b.2. The name and address of each person who received a prize, certificate, gift or lot; and

18.3.b.3. The name and address of each person who responded to the advertisement or solicitation but did not receive a prize, certificate, gift or lot.

18.3.c. The Commission will regard the following as unlawful conduct within the meaning of West Virginia Code § 30-40-19(a)(37):

18.3.c.1. Failure to comply with subsection (a) or (b);

18.3.c.2. Failure to disclose the possibility that a particular prize, certificate, gift or lot may not be distributed or awarded;

18.3.c.3. Advertising the availability of a prize, certificate, gift or lot when it is not available for distribution or awarding; and

18.3.c.4. Giving a misleading description of a prize, certificate, gift or lot.

18.4. Nothing contained in this section shall be construed to prohibit a licensee from:

18.4.a. Providing a closing gift of nominal value to a party to the transaction, which may be done without the approval of the licensee's responsible broker;

18.4.b. Discussing or negotiating the compensation the licensee agrees to charge for his or her services; or

18.4.c. Disseminating information about special terms, conditions or other offers which are bona fide offers made by a principal to a real estate transaction.

W. Va. Code R. § 174-1-18