November 13th, 2023 at 2:45 pm
Multiple Choice Question: Do these signs comply with the law? Pick the best answer:
A. Yes.
B. Yes, but only if the signs have no name or branding on them.
C. No, the signs must include the broker’s name.
D. No, the signs must include the agent’s name, agent’s DRE license number, and broker’s name.
Answer: Answer A is the correct answer! The law allows a real estate agent to use a generic directional sign with no name or branding on it (see 10 Calif. Code of Regulations Section 2773). However, what the law may or may not require of real estate licensees is not the same thing as what the NAR Code of Ethics may require of its REALTOR®-members, as further discussed below.
Answer B is wrong. Aside from allowing signs with no name or branding, the law also allows a sign where the only licensee identified is a responsible broker (see Regulation 2773).
Answer C is wrong. The law does not require the broker’s name on a directional sign. However, the NAR Code of Ethics does require its REALTOR®-members to include the brokerage’s name in their advertisements of listed property (see Standard of Practice 12-5 of the NAR Code of Ethics). A directional sign is likely to be considered an “advertisement” of a listed property under Standard of Practice 12-5.
Answer D is wrong. If an agent elects to include his or her own name on a directional sign, the law requires the agent to also include the agent’s DRE license number and the responsible broker’s name (see Regulation 2773). But the law does not require an agent to include his or her own name on a directional sign.
-Thank you to Lee Schoenbart (San Diego Central Office) for suggesting this week’s legal tip.
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