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Real Estate · Advertising and Marketing Rules

What is the broker's responsibility for advertising published by the brokerage and its agents?

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Correct answer

The broker is responsible for ensuring all brokerage and agent advertising is truthful, not misleading, properly identifies the brokerage, and complies with fair-housing and state advertising rules

  1. A No responsibility for agent ads
  2. B Responsibility only for the broker's own ads
  3. C The broker is responsible for ensuring all brokerage and agent advertising is truthful, not misleading, properly identifies the brokerage, and complies with fair-housing and state advertising rules
  4. D Advertising compliance is the agent's sole concern

Why this is the answer

State law makes the broker responsible for advertising done in the firm's name and, through the duty to supervise, for the advertising of affiliated agents. Brokerage advertising must be truthful and not misleading, must generally identify the brokerage so the public knows the licensee operates under a broker, and must comply with fair-housing law and any state-specific disclosure rules (for example, how team or franchise names appear). A broker who allows misleading or 'blind' ads, or discriminatory advertising, can be disciplined. Because requirements vary by state, brokers adopt advertising policies and review processes, and the state broker portion tests this supervisory responsibility for advertising.
Source: Advertising Disclosure Rules

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About this topic: Advertising and Marketing Rules

Advertising and marketing rules cover brokerage name requirements, team and individual advertising, internet and social media rules, and the prohibited claims and practices. This is one of 5 Broker (State Law) questions on advertising and marketing rules, each with a full explanation on a single study page.

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