(a) For the purposes of this section, an "advertisement" is
a written or oral statement which induces or attempts to induce a member of
the public to use the services of a real estate licensee. The term "advertisement"
includes, but is not limited to all publications, radio or television broadcasts,
all electronic media including E-mail and the Internet, business stationary,
business cards, signs and billboards. The provisions of this section apply
to all advertisements by a real estate licensee unless the context of a particular
provision indicates that it is intended to apply to a specific form of advertisement.
Provided, however, a communication from a licensee to a member of the public
after the member of the public agreed for the licensee to provide services
is not an advertisement for the purposes of this section
(b) A licensee may not utilize a copyrighted trade name unless
the licensee has legal authority to use the name.
(c) A broker shall notify the commission in writing within
30 days after the broker, or a salesperson sponsored by the broker, starts
or stops using a name in business other than the name in which the person
is licensed. Licensees may not use the name of a salesperson, including an
assumed name, in advertisements unless the sponsoring broker's name or assumed
name also appears. If the commission is notified of a licensee's use of an
assumed name which contains only the name of a salesperson, including an assumed
name, the commission shall notify the licensee, and the licensee's sponsoring
broker, if any, that use of the name alone in advertising is grounds for disciplinary
action under this section.
(d) In an advertisement placed by a licensee that does not
readily identify the licensee as a real estate agent, the advertisement must
include an additional designation such as "agent," "broker" or a trade association
name which serves clearly to identify the advertiser as a real estate agent.
(e) Because salespersons may lawfully engage in brokerage activity
only when they are associated with, and acting for, a broker, a listing may
be solicited and accepted only in a broker's name. Advertisements concerning
a broker's listings must include information identifying the advertiser as
a real estate broker or agent. The name of a salesperson sponsored by the
broker may also be included in the advertisement, but in no case shall a broker
or salesperson place an advertisement which in any way implies that the salesperson
is the person responsible for the operation of a real estate brokerage.
(f) A corporation or limited liability company licensed as
a real estate broker may do business in the name in which it was chartered
or registered by the Secretary of State.
(g) A licensee's advertising must not cause a member of the
public to believe that a person not authorized to conduct real estate brokerage
is personally engaged in real estate brokerage, provided that an advertisement
of a trade, business, or assumed name does not constitute a holding out that
a specific person is engaged in real estate brokerage.
(h) An advertisement placed where it is likely to attract the
attention of passing motorists or pedestrians must contain language that clearly
and conspicuously identifies as a real estate broker or agent the person publishing
the advertisement. Advertisements in which the required language is not clear
and conspicuous shall be deemed by the commission to be deceptive and likely
to mislead the public for the purposes of Texas Civil Statutes, Article 6573a
(the Act), §15(a)(6)(P). The commission shall consider language as clear
and conspicuous if it is in at least the same size of type or print as the
largest telephone number in the advertisement, or it otherwise clearly and
conspicuously identifies as a real estate broker or agent the person who published
it. The commission shall consider advertisements not to be in compliance with
this subsection if the required language is in print or type so small that
it cannot be easily read from the street or sidewalk. This subsection does
not apply to signs placed on real property listed for sale, rental or lease
with the broker who has placed the sign, provided the signs otherwise comply
with this section and the provisions of the Act regarding advertising.
(i) A real estate licensee placing an advertisement on the
Internet, electronic bulletin board, or similar mechanism must include on
each page on which the licensee's advertisement appears any information required
by this section and the disclosure relating to the advertiser's status as
a broker or agent required by §15(a)(6)(P) of the Act.
(j) A real estate licensee placing an advertisement by using
any electronic communication, including but not limited to E-mail and E-mail
discussion groups, must include in the communication and in any attachment
which is an advertisement the information required by this section and the
disclosure relating to the advertiser's status as a broker or agent required
by §15(a)(6)(P) of the Act.
(k) An advertisement containing an offer to rebate to a principal
a portion of a licensee's commission must disclose that payment of the rebate
is subject to the consent of the party the licensee represents in the transaction
. If payment of the rebate is contingent upon a party's use of a selected
service provider, the advertisement also must contain a disclosure that payment
of the rebate is subject to restrictions.
(l) If an advertisement offers, recommends or promotes the
use of services of a real estate service provider other than the licensee
and the licensee expects to receive compensation if a party uses those services,
the advertisement must contain a disclosure that the licensee may receive
compensation from the service provider.
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Source Note: The provisions of this §535.154 adopted to be effective January 1, 1976; amended to be effective March 22, 1978, 3 TexReg 823; amended to be effective February 1, 1980, 4 TexReg 4344; amended to be effective June 22, 1990, 15 TexReg 3336; amended to be effective February 8, 1991, 16 TexReg 462; amended to be effective January 1, 1997, 21 TexReg 10179; amended to be effective May 27, 1998, 23 TexReg 5437; amended to be effective March 15, 1999, 24 TexReg 1775; amended to be effective October 1, 2000, 25 TexReg 8646 |