Truth in advertising: license identification, team names, and misleading ads

Identify the service provider

California Bus. & Prof. Code § 10140.6(b) requires the licensee's name, license identification number, and responsible broker's identity on solicitation materials intended as the first point of contact with consumers and on real property purchase agreements when acting in a capacity requiring a real estate license or mortgage loan originator endorsement. A mortgage loan originator also discloses the unique identifier assigned by the Nationwide Multistate Licensing System and Registry. Solicitation materials include business cards, stationery, flyers, electronic and print advertisements, and materials seeking a professional relationship.

Section 10140.6(a) separately requires matter concerning licensed activity published or distributed in a newspaper or periodical, or by mail, to contain a designation disclosing that the licensee is performing acts requiring a real estate license. That designation and the license identification number serve different purposes.

Section 10140.6(c) exempts the listed property and directional signs if they display the responsible broker's identity without reference to an associate broker or licensee, or display no licensee identification information. Apply each rule to the particular material and its stated exceptions; do not assume one formula fits every advertisement.

Keep team branding connected to the broker

Under Bus. & Prof. Code § 10159.7, a qualifying team name is used by two or more licensees, including a salesperson, and includes a member's surname with associates, group, or team. It cannot imply an entity independent of the responsible broker. Meeting the statutory conditions avoids treatment as a fictitious business name and does not require a separate license for the team name. Broker supervision remains.

Section 10159.6 requires team advertising and solicitation materials to display conspicuously and prominently the team name and at least one licensed member's name and license number. The responsible broker's identity must be as prominent and conspicuous as the team name. The materials cannot imply an independent real estate entity.

Check truthfulness and altered images

Accurate identification does not cure a misleading property claim. Verify claims such as approval of additional living space before advertising them as facts.

Bus. & Prof. Code § 10140.8 requires property-sale advertisements containing covered digitally altered images to carry a reasonably conspicuous statement on or adjacent to the image and a public link, URL, or QR code providing a clearly identified original image. The statement must indicate where the unaltered images can be accessed. On an advertiser-controlled website, include the originals in the posting or use the permitted public link. Digitally adding furniture or removing a utility pole qualifies; common photographic adjustments that do not change the representation of the property are excluded.