Real Estate · State License Law and Commission

Under state advertising rules, what is generally required when a licensee advertises a property or their services?

Correct answer

The advertising must not be false or misleading, and must typically identify the brokerage (and licensee status) — 'blind ads' that hide that the advertiser is a real estate professional/brokerage are generally prohibited

  1. A Nothing specific
  2. B The advertising must not be false or misleading, and must typically identify the brokerage (and licensee status) — 'blind ads' that hide that the advertiser is a real estate professional/brokerage are generally prohibited
  3. C Only the agent's personal phone number
  4. D Only the price

Why this is the answer

Advertising requirements: State license laws regulate real estate advertising to protect consumers.

Common rules: Advertising must NOT be FALSE or MISLEADING; must typically include the BROKERAGE name (and disclose that the advertiser is a licensed real estate professional/brokerage); BLIND ADS (ads that conceal the fact that the advertiser is a licensee/brokerage — making it look like a private 'for sale by owner') are generally PROHIBITED; the licensee must advertise under their broker's name/supervision; TEAM/PERSONAL names may have specific disclosure requirements.

Online/social media: Same rules apply to digital advertising, websites, and social media.

Property ads: Must be accurate (don't misrepresent features, price, availability); fair housing compliance (no discriminatory language or steering).

Authority to advertise: A licensee generally must have the seller's permission to advertise a property.

Consequences: False/misleading advertising or blind ads violate license law and can result in discipline; the requirements that advertising be truthful, not misleading, and properly identify the brokerage (no blind ads) are standard state advertising rules tested on the exam — designed to ensure consumers know they're dealing with a licensed professional.

Source: Real Estate State — License Law, Advertising Rules

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State license law and commission questions cover who must be licensed, exemptions, license types and renewal, continuing education, the real estate commission's powers and the grounds for discipline. This is one of 34 Salesperson (State Law) questions on state license law and commission, each with a full explanation on a single study page.

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