Text messaging converts at higher rates than email and phone for follow-up in real estate — open rates above 90%, response rates 3–5x email. But the legal framework governing text outreach is strict, and agents who ignore it face significant liability. Here's what you need to know before you send a single business text.
Key Takeaways
- The Telephone Consumer Protection Act (TCPA) governs commercial text messaging and carries fines of $500–$1,500 per violation.
- Inbound leads who provide their number generally provide implied consent for follow-up — but explicit consent is safer and more defensible.
- Mass texting to purchased lists without documented consent is illegal under TCPA and should never be done.
- 10DLC registration is required for business text messaging through most carriers — without it, messages are flagged or blocked.
- Every text campaign should include an opt-out mechanism ("Reply STOP to unsubscribe") and honor opt-outs immediately.
What Is TCPA and Why Does It Apply to Real Estate Agents?
The Telephone Consumer Protection Act was passed in 1991 and has been updated repeatedly as communication technology evolved. It regulates automated calls and texts to consumers, requiring prior express consent before sending marketing messages. Real estate agents who text leads — particularly using automated systems — are subject to TCPA rules.
TCPA violations are taken seriously by courts. Class action lawsuits against real estate companies for improper text messaging have resulted in settlements in the millions of dollars. Individual agent violations, while less likely to attract class action, can still result in substantial fines.
What Constitutes Valid Consent for Real Estate Texts?
Implied consent exists when someone contacts you first — calls your number, fills out your web form, texts you directly. They've initiated contact and provided their number in a business context. Following up via text in this scenario is generally considered acceptable under current interpretations of TCPA, though it's not without nuance.
Express written consent is stronger and more defensible. A checkbox on your lead capture form that reads "I consent to receive text messages from [Agent Name]" with a disclosure of message frequency and opt-out instructions meets the express consent standard.
For any automated text campaign — sequences that fire without your manual involvement — express written consent is required.
What Is 10DLC and Do You Need It?
10DLC (10-Digit Long Code) is a registration system that major carriers use to verify business text senders. Since 2023, unregistered business text campaigns are heavily filtered or blocked by carriers. If you're using a CRM or AI platform to send automated texts, your number needs to be 10DLC registered.
Registration involves providing your business information, use case description, and sample messages to your carrier or messaging platform. Most CRM and AI platforms handle 10DLC registration on your behalf as part of their setup process.
What Should Every Real Estate Text Campaign Include?
Every business text you send should include your name and agency, be relevant to the recipient's situation, and include an opt-out mechanism: "Reply STOP to unsubscribe." Opt-outs must be honored immediately and permanently. Texting someone after they've opted out is a clear TCPA violation.
FAQs
Can I text leads I got from a purchased list? Not legally without documented prior express written consent from each individual on the list. Purchased list texting is a high-risk activity that most compliance attorneys advise against entirely.
What happens if I text someone on the Do Not Call registry? The DNC registry applies primarily to voice calls, not texts — but TCPA still applies to texts. The more relevant concern is whether you have documented consent, not DNC status.
Do I need a lawyer to set up a compliant text campaign? For a basic follow-up sequence on inbound leads, most standard CRM and AI platforms have compliance guardrails built in. For mass campaigns or any novel approach, consulting a TCPA attorney is worthwhile given the liability exposure.
Does Terminus handle TCPA compliance for its text features? Terminus includes opt-out handling and supports 10DLC registration. Agents are responsible for obtaining proper consent before enabling automated text follow-up. Consult your broker and legal counsel for your specific situation.
Text messaging is one of your highest-converting follow-up channels — when done right. Terminus includes compliant automated text follow-up built into its call coverage workflow. Get started for free.
Sources
- TCPA text: FTC.gov and FCC.gov regulatory guidance
- 10DLC registration: CTIA carrier guidelines
- Industry estimate based on text messaging engagement benchmarks