California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A team of salespersons operating under a broker uses the name 'Prestige Home Sellers' in all advertising, without referencing the broker's name. Under California DRE advertising rules, this practice is:
- AProhibited unless the advertisement also includes the responsible broker's license identification
- BPermitted only if the team consists of at least five licensees
- CPermitted as long as the team name does not imply it is a separate brokerage
- DProhibited entirely because team names are not allowed in California
Show answer & explanationAnswer & explanation
Correct answer: A. Prohibited unless the advertisement also includes the responsible broker's license identification
California DRE regulations permit the use of a team or fictitious business name in advertising, but the broker's identity (name and/or license number, per current DRE guidance) must also be included, and the team name cannot imply that the team is an independently licensed entity separate from the broker. Simply avoiding the broker's name entirely is prohibited.
Why the other options are wrong
- B. There is no minimum licensee count requirement for using a team name.
- C. This option omits the requirement to include the broker's identifying information in the ad.
- D. Team names are permitted under DRE rules, provided proper disclosure requirements are met.
Team Name Advertising Requirement
California DRE rules allow use of team names in advertising, but the responsible broker's identity must also be disclosed, and the team name must not imply an independent brokerage.
- Team names permitted with broker disclosure
- Cannot imply separate licensed brokerage status
- Broker's name/license info must appear in advertisement
Memory trick: 'Team name shines, but broker's name must align.'