Department of State regulations and the advertising rules

New York advertising starts with authority

New York's Department of State can discipline a licensee for dishonest or misleading advertising. Advertising includes promotion and solicitation related to licensed activity through websites, email, business cards, signs, flyers, mail, and telephone. Commentary unrelated to promoting licensed activity falls outside this definition. Cooperative shares count as property.

Under 19 NYCRR § 175.25, a broker must obtain authorization to advertise property from the owner or through the regulation's authorized arrangements. A salesperson, associate broker, or team advertising property listed with or represented by the sponsoring broker needs that broker's approval of placement. The team's enthusiasm does not replace approval. A team means two or more persons associated with the same brokerage, at least one of whom is a salesperson or associate broker.

Check permission and identification separately

Advertising another broker's exclusive listing requires the exclusive listing broker's authorization. The advertisement must clearly and conspicuously identify that broker immediately after an accepted phrase, such as ‘Listing Provided by’. If a licensee pays a third party for that advertising and the advertisement provides the advertising broker's name, it must also disclose that it is paid advertising, using at least the word ‘advertisement’. Permission to advertise does not itself grant permission to reproduce photographs: photographs posted on a broker's website require written permission from their copyright holder.

Three checkpoints form an advertising review path. First confirm authority to advertise, including owner authorization and required broker approval. Second check authorization for another broker's exclusive listing and written permission for website photographs. Third check the disclosures applicable to the advertising medium. — Review authority, permissions, and medium-specific disclosures.

Match the medium

A salesperson, associate broker, or team website must link from its homepage to the associated broker's or brokerage's website unless that broker or brokerage has no website. An initial email to a client or potential client must provide the required advertising information; subsequent emails to the same recipient may omit it. Unless local law prohibits it, broker-listed property must be advertised as such, and sale or lease signs on that property must identify the representative broker or brokerage. These examples do not replace a complete advertising compliance review.

Regulation and accountability

The State Board of Real Estate has rulemaking and educational responsibilities, but the Secretary of State has exclusive regulatory authority over specified subjects, including clients' funds and transaction records. The Department of State may revoke or suspend a license, impose a fine within the statutory limit, or reprimand a licensee for dishonest or misleading advertising. Disciplinary charges generally require written notice at least ten days before the hearing and an opportunity to be heard in person or by counsel; the Department also has authority to suspend a license pending a hearing.

If an apartment building prohibits business signs in its lobby, the business sign belongs on the corridor wall beside the business dwelling's entrance or on its entrance door. Part 175 itself does not determine whether a salesperson is an employee or independent contractor.