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Real Estate · Supervision of Licensees

What is a reasonable practice for a broker to supervise the advertising done by affiliated agents?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Review and approve agent advertising to ensure it identifies the brokerage, is not misleading, and complies with fair-housing and license-law requirements

  1. A Require the broker's name on personal social posts only
  2. B Review and approve agent advertising to ensure it identifies the brokerage, is not misleading, and complies with fair-housing and license-law requirements
  3. C Prohibit all advertising
  4. D Allow agents to advertise with no oversight

Why this is the answer

Advertising is an area where the broker's supervisory duty is clearly tested. Agents' advertising must typically include the brokerage's name (so the public knows the agent works under a broker), must be truthful and not misleading, and must comply with fair-housing rules and any state-specific disclosure requirements. A reasonable broker reviews or sets clear standards for agent advertising — including signs, online listings, and social media — and corrects problems. Because the brokerage can be held responsible for an agent's misleading or discriminatory ad, having a review process and written advertising policy is a practical way the broker meets the duty to supervise.
Source: ARELLO Broker Advertising Supervision

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About this topic: Supervision of Licensees

Supervision of licensees questions cover the broker's responsibility for the acts of affiliated licensees, training and oversight requirements, reviewing contracts and advertising, and handling complaints. This is one of 6 Broker (National) questions on supervision of licensees, each with a full explanation on a single study page.

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