California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A real estate agent places a newspaper ad stating 'Beautiful 3BR home, $650,000, call 555-0100' without including the agent's name or broker identification. This advertisement violates California law because it is:
- AAn unlicensed activity violation
- BA violation of the Truth in Lending Act
- CA blind advertisement that fails to disclose licensed status
- DA misleading price representation
Show answer & explanationAnswer & explanation
Correct answer: C. A blind advertisement that fails to disclose licensed status
California Business and Professions Code requires that all advertising by a licensee disclose that the advertiser is a real estate licensee. An ad that omits this and appears to be from a private party is a prohibited 'blind ad.'
Why the other options are wrong
- A. The agent is licensed; the issue is failure to disclose status, not practicing without a license.
- B. Truth in Lending applies to credit disclosures, not real estate advertising identity.
- D. There's no indication the price itself is false or misleading.
Blind Advertisement
An advertisement by a licensee that fails to disclose the advertiser's status as a real estate licensee, which is prohibited under California law.
- All licensee ads must disclose license status (e.g., 'agent,' 'broker,' or DRE license number in some contexts)
- Blind ads can mislead consumers into thinking they're dealing with a private seller
- Violations can result in disciplinary action by the DRE
Memory trick: No hiding behind a 'For Sale by Owner' mask