The 2018 Advertising Rules

Beginning January 1, 2018, all first point of contact solicitation materials must include:

• The name and number of the licensee. This is for both sales-agents and broker-associates.

• The responsible broker’s “identity.” This means the name under which the broker is currently

licensed by CalBRE and conducts business in general or is a substantial division of the real estate

firm. The broker’s license number is optional.

• The status of the agent such as “REALTOR®” or “agent” (unless the name of the company makes

clear that the advertisement is by a licensee)

What types of advertising does this apply to? Everything.

• Business cards

• Stationery

• Advertising flyers

• Advertisements on television, in print, or electronic media

• “For sale,” “open house,” lease, rent or directional signs when any licensee identification

information is included

• Any other material designed to solicit the creation of a professional relationship between the

licensee and a consumer

Are there any exceptions? There is a limited exception.

When no sales-agent or broker associate is referenced, the new law permits an exception for “for

sale,” rent, lease, “open house” and directional signs. These signs need not include the agents’ or

associate brokers’ names or license numbers as long as either:

These exceptions also apply to the general rule of disclosing a licensee’s status, such as broker,

agent or REALTOR®, in all advertising. But keep in mind that under the N.A.R. Code of Ethics

Standard of Practice 12-5, any advertisement of real estate services or listed property in any

medium must disclose the name of the firm in a reasonable way. So even though a licensee who is

not a REALTOR® may post under the new law a completely generic “for sale” sign, REALTORS®

should, at the very least, include the name of the firm on a “for sale” sign.

QUICK GUIDE

The responsible broker’s identity appears (which includes the broker’s name, but the

broker’s license number is optional). Under this exception there can be no reference on

the sign to an associate broker or sales-agent.

OR

There is no licensee identification information at all. Neither the broker nor any agent is

referenced in the sign. (Not permitted for REALTORS® when advertising real estate

services)

https://www.car.org/riskmanagement/qa/advertising-folder/advertisingyourservices/For more information go to:

NEW STANDARDS

IN ADVERTISING

What California REALTORS® Need to Know

W hat W e

W ill Cover

Changes to business

advertising practices

W hat is changing and when

Types of advertising affected

Exceptions

Samples

Special Scenarios

Some Context AB 1650 (Sponsored by C.A.R.)

▪ Makes significant changes to the S tate’s

B usiness and P rofessions Code

▪ Expands w hat must be included in real

estate- related advertising materials

▪ Creates uniform advertising standards across

a variety of media and types

The 2018

A dvertising S tandards

Solicitat ion materials must include:

▪ Name, 8- digit CalB R E license number and responsible broker’s name

- A pplies to agents and broker- associates

- B roker license number is optional

▪ Your status (“R EA LTOR ® ” or “agent”)

- W hen the name of the company does not make clear that the advertisement is by a licensee, then the status is legally required

Types of

A dvertising A ffected

Business Cards Stat ionery Advert ising Flyers

Television, print or

electronic Media

advert ising

“For sale,” “open house,”

lease, rent or direct ional

signs when any licensee identification information is included

Any other material

designed to solicit the creation of a professional relationship between licensee and consumer

The Basics

Correct - Includes responsible broker identity

Correct - Includes “R EA LTOR ® ” or “agent.” W hen the name of the company does not make clear that the advertisement is by a licensee, then the status is legally required

Incorrect - does not include agent license number. The license number needs to be included and its font should be no smaller than the smallest font on the business card

The basic advertisement rule: The responsible broker identity is required whenever an agent creates a first point of contact advertisement or solicitation. In that case the agent’s license must be included.

Keep in Mind

The new law applies to the general rule of disclosing a licensee’s status (broker, agent or R EA LTOR ® ) in all advertising

N.A .R . Code of Ethics S tandard of P ractice 12- 5: A ny advertisement of real estate services or listed property in any medium must disclose the name of the firm in a reasonable and readily apparent w ay

R EA LTOR S ® must include the name of their firm on signs

Responsible

B roker Identity

▪The R esponsible B roker Identity is the name under which the broker is currently licensed and conducts business in general or is a substantial division of the real estate firm

▪The responsible broker’s license number is optional

Exceptions

For Sale signs

Open house signs

For Rent signs

For Lease signs

Directional signs

But only when:

The responsible broker’s identity appears (license number is optional) and there is no reference on the sign to an associate broker or sales agent

“The broker sign exception” OR

There is no licensee identification information at all

“The generic sign exception”

Example of Basic Sign W ithout Exception

Correct – includes responsible broker identity

Correct – includes license number of agent. The font is as large as other print on the ad.

ANY BROKERAGE

Jane Agent

555.555.5555 BRE # 00000000

•Remodeled Kitchen •Pool •NEW Roof •NEW Carpet & Paint

Example of Broker

S ign Exception

Correct – Includes responsible broker identity

Correct – B ecause no sales agent or broker- associate is referenced, the broker may include their name alone w ith no license number

Example of Broker S ign Exception

Correct – Includes responsible broker identity

Incorrect – S ince the agent is referenced, the sign must include the license number of the agent

ANY BROKERAGE

555.555.5555

ANY

Example of Generic

Sign Exception:

Generic For Sale Sign

Incorrect - Although a totally generic “For Sale”

sign is legally permitted under CA law, it isn’t

under the N.A.R. Code of Ethics, which requires

that the firm name be disclosed in a reasonable

and readily apparent manner when advertising

real estate services

S pecial Challenges

for Social Media

These common type posts would be incorrect as they are missing the required disclosures :

• Electronic Media Advertising includes Social Media

• Is your Tweet, Facebook, Instagram, Pinterest, SnapChat post of that listing

designed to solicit the creation of a professional relationship?

• If yes, you must include room for your license number and broker’s name

and your status in the post!

Incorrect – does not include responsible broker identity or agent license number

Incorrect – does not include responsible broker identity or agent license number

Rules for

Mortgage Originators

and B rokers

CalBRE-licensed mortgage brokers must include:

Licensed status by use of the term “broker,” “agent” or their abbreviations

The regulatory entity under w hich the loan transaction is being arranged. There are tw o w ays to state that a loan is being made under a CalB R E license:

R eal estate broker, California B ureau of R eal Estate, or

California B ureau of R eal Estate, real estate broker

If the mortgage broker also is mortgage originator, the unique identifier assigned to the licensee by the Nationw ide Mortgage Licensing S ystem and R egistry (NMLS ) must be included on all solicitation materials

This information also must be disclosed in the printed text of the advertisement and in the spoken text of any radio or television ad

Type size cannot be less than the smallest type in the advertisement copy

Summary

New standards in advertising go into effect Jan. 1, 2018

Your name, 8- digit CalB R E number and responsible broker’s name must be included in all solicitations

A pplies to business cards, stationery, flyers, TV , print, or electronic media advertising

A pplies to signs w hen licensee information is included

A ny other material designed to solicit a professional relationship betw een licensee and consumer

ADDITIONAL

RESOURCES

New Standards in Advert ising

All content is available on the C.A.R. website in the Legal Tools section

Advert ising By REALTORS®

Advert ising Your Services: Required Name and License Information

Q&A

Q&A