The Advertising Rules You Need to Know

Without advertising, how would prospects find you or available properties? There are many rules governing your ads—standards you must follow in the NAR Code of Ethics and regulations from the Texas Real Estate Commission.

While TREC and the REALTOR® association are not proactively policing your advertisements, it’s your responsibility to get them right. Any missteps can lead to an ethics or TREC complaint that at best will be a hassle and could result in a punishment or fine.

Review these frequently asked questions to make sure your advertisements meet all requirements.

The Basics

What must my ads include to comply with TREC rules?

All license holders’ advertisements must include the license holder’s name or team name. Ads also must include the broker’s name in at least half the size of the largest contact information for any sales agent, associated broker, or team name contained in the advertisement. The broker’s name can be the name on the broker’s TREC license, an alternate name registered with TREC (if the broker is an individual), or an assumed business name registered with TREC. Contact information can be anything used to contact a license holder, such as the license holder’s name or phone number.

What does the Code of Ethics require in my advertisements?

Article 12 of the NAR Code of Ethics requires your firm and status as a real estate professional in all advertisements. According to NAR’s Professionalism in Real Estate Practice publication, “This may be accomplished by including the terms REALTOR®, REALTORS®, or by disclosing their status as a licensed broker, appraiser, property manager, or other real estate professional.” A professional standards hearing panel determines whether REALTORS® have violated Article 12 in their advertising.

Rules about Names

Can I use a nickname or my middle name in my advertising?

TREC calls these alternate names. Before using them in your ads, you must register them with TREC. You do not need to register a name that is a common derivative of the name on your license, such as Bill for William.

Can I use alternate names other than my nickname or middle name in my advertising?

Yes. However, before using an alternate name, it must be registered with TREC using the Notice of Alternate Name Used by a Sales Agent or Broker License.

Can I use an assumed business name of my broker in my advertising?

Yes. However, before a broker, associated broker, or sponsored sales agent starts using a broker’s assumed business name in an advertisement, the broker must register the name with TREC and the broker must provide written evidence of legal authority to use such name in Texas, such as registration of the name with the secretary of state’s or county clerk’s office. A form to register a broker’s assumed business name, Notice of DBA or Assumed Name for a Broker’s License, is available on TREC’s website.

Can a sales agent who is the owner or president of a brokerage use that title in advertising?

No. Even though the sales agent may hold such a title, using it in advertising implies the sales agent is responsible for the operations of the brokerage. Similarly, a sales agent cannot use the title CEO, COO, or other similar titles in advertising. Remember, this extends to email or website addresses.

Can I use any name I want as a team name?

No. A team name is a name used by one or more license holders sponsored by or associated with the same broker that is not the broker’s name or an assumed business name of the broker. Team names must end with the term Team or Group. Team names cannot contain terms that imply that the team is offering brokerage services independent of the broker. Some prohibited terms are brokerage, company, and associates. The terms realty or real estate are acceptable as part of a team name as long as the team name ends with the term Team or Group. Keep in mind that the ad must still contain the name of the broker in at least half the size of the largest contact information in the advertisement. Before you use a team name in an ad, the broker must register the team name with TREC.

How does the broker register my team name with TREC?

A form to register team names, Notice of Team Name for a Broker’s License, is available on TREC’s website.

The Term REALTOR®

Can I use the term REALTOR® in connection with my team name?

No. While the term may be used in connection with your personal name and firm name, that doesn’t extend to team names. Teams function as groups within a firm and do not qualify for the use of the term REALTOR®. Members who are part of a team can still use the term in connection with their personal name or firm name but not as part of the team name.

Can I use the term REALTOR® as part of my website’s domain name?

Yes, but only in connection with your personal name or firm name. The requirements to use punctuation, capital letters, and the registration symbol are not required for your website address. However, the term REALTOR® cannot be used with descriptive words or phrases. Domain names such as number1realtor.com, firstrealtor.org, or realtorproperties.com are improper uses. Domain names such as johndoerealtor.com or chiltepinrealtors.com are acceptable.

Online Advertising

How do I comply with advertising rules in texts or on social media?

The required information—the license holder’s name or team name and the broker’s name in at least half the size of the largest contact information in the advertisement—may be located on a separate page or on the account user profile page of the license holder as long as the account profile or separate page is readily accessible by a direct link from the social media or text. In addition, the license holder’s name or team name and the broker’s name must be readily noticeable on the account profile page or separate page that is linked.

Must the name of my firm be included in print and online channels? What about my broker’s name?

NAR’s Code of Ethics requires that the name of the firm be included in advertisements of listed properties and on a REALTOR®’s website. It is prudent to include the name of the firm in all ads. Furthermore, TREC rules prohibit an advertisement that in any way implies that a salesperson is the person responsible for the operation of a real estate brokerage. The broker’s name should also be included in any advertisement, including a REALTOR®’s website, to avoid violating this rule. The broker’s name is also required to be in at least half the size of the largest contact information found in the advertisement.

How can I determine if my online ads generally comply with the rules and regulations?

The following checklist of questions can help. While this list may not be comprehensive, it sets out many compliance issues.

• Does the ad contain any misleading statements, or does it tend to create a misleading impression in any manner? You may want someone who did not design the ad to scrutinize it for any potentially misleading statements. Keep in mind that the standard is not whether a statement is true, but whether the advertisement is “likely to deceive the public” or “tends to create a misleading impression.”
• Does the ad contain the name of the real estate firm or broker? It should and must comply with size requirement to be at least half the size of the largest contact information in the advertisement.
• Does the ad identify the professional or license status of people in the ad? It might be prudent to identify the license status of all individuals and firms named in the ad, either specifically or globally. Use of the term REALTOR® is acceptable to identify this status.
• Does the person causing the ad to be published have proper authority to publish or submit the advertisement?
• Is the price quoted the price agreed upon by the owner?
• If any service is offered “free of charge,” make sure that the service is not tied to or contingent upon any service for which the REALTOR® is to be compensated.
• If any inducements are offered, does the ad fully describe the conditions to receive such inducements?
• If any loan information is advertised, does the ad comply with requirements of Regulation Z? [See first question of Offers and Services below]
• Does the ad inadvertently imply a limitation or preference to a protected class that could potentially violate fair housing laws?
• Is the specific information related in the advertisement accurate?

Offers and Services

What requirements must I comply with if I put any loan information, such as the monthly payment or interest rate, in an ad?

If the ad contains loan information, it must comply with the Truth in Lending Act and its implementing regulation, Regulation Z. If the ad contains loan information, those terms must be available to a qualified borrower. If a rate of finance charge is set out (interest, points, loan fees), then the words “annual percentage rate (APR)” must be used. The advertisement must state the APR and whether the finance charge can increase over the term of the loan. If the advertisement contains information about the down payment, term, payment amount, or finance charge, then all of the following information must be disclosed: down payment, term, APR, and whether the rate may be increased. Mentioning only the APR will not trigger the additional disclosures. If specific information other than the APR is mentioned, such as the loan amount, down payment, etc., then the disclosures are triggered.

Can I advertise that I will rebate part of my commission to a buyer to help attract offers?

Yes. The ad must disclose that the rebate is subject to the seller’s consent since the rebate is to a party you do not represent. Also, if the rebate is contingent upon certain restrictions, such as the use of a particular service provider, the ad must contain a disclosure that payment of the rebate is subject to restrictions.

Can I advertise or recommend the use of services from certain service providers such as inspectors, moving companies, or repair contractors on my website?

Yes. However, if you advertise the use of a service provider and expect to receive compensation from that service provider when someone uses his services, your ad must disclose that arrangement. Keep in mind that acceptance of certain fees from service providers may violate RESPA or other laws, so consult with an attorney about any fees you plan to receive.

My sellers hired a photographer to take professional photos of their property. The photographer provided multiple shots of their backyard pool and landscaping, but together we selected only one for the property’s marketing materials and the MLS. I’d like to use one of the extra photos for my business’s marketing materials. Since it’s my listing, can I use the photo and credit the photographer?

No. Your sellers hired the photographer to take listing photos and they are the ones who entered into an agreement with the photographer. Merely crediting the copyright owner does not protect you from a copyright infringement claim.

Through their agreement with the photographer, your sellers may own the photographs outright or simply have rights to use the photos for marketing the property.

Talk to your sellers. If your sellers own the photos, you should ask them for permission to use one in your marketing materials. But if they only have rights to use the photographs, you should contact the photographer directly. In both scenarios, you should get permission in writing and ensure it allows you to use the photograph in the way you want.