TREC TREC Advertising Rules 2 — Questions and Answers
Question 1: Which of the following is prohibited in Texas real estate advertising under TREC rules?
- Using the broker's logo
- Guaranteeing a specific sales price to a seller in an ad
- Listing the number of bedrooms and bathrooms
- Advertising a property as 'for sale by owner' when listed (Correct answer)
Correct answer: Advertising a property as 'for sale by owner' when listed
Advertising a listed property as 'for sale by owner' is deceptive and prohibited because it misrepresents the nature of the transaction to potential buyers.
Question 2: A TREC rule requires that the broker's name in advertising be:
- In the same font size as the agent's name
- At least as prominent as any other name in the advertisement (Correct answer)
- Listed before the agent's name in all cases
- In a different color than the agent's name
Correct answer: At least as prominent as any other name in the advertisement
TREC requires the sponsoring broker's name to be at least as prominent as any other name in the advertisement, ensuring consumers can identify the brokerage.
Question 3: When advertising a property, which fair housing statement should a Texas licensee include?
- It is mandatory to include 'Equal Housing Opportunity' or the EHO logo (Correct answer)
- It is optional and only required for commercial properties
- It is only required for properties with more than 4 units
- It is never required in individual property ads
Correct answer: It is mandatory to include 'Equal Housing Opportunity' or the EHO logo
HUD guidelines and TREC best practices require inclusion of the 'Equal Housing Opportunity' statement or logo to demonstrate commitment to fair housing.
Question 4: A Texas licensee receives an email lead from an internet advertisement. Under CAN-SPAM and TREC rules, follow-up emails must:
- Be sent daily until the lead responds
- Include an opt-out mechanism and the licensee's physical address (Correct answer)
- Be approved by the broker before sending
- Only be sent during business hours
Correct answer: Include an opt-out mechanism and the licensee's physical address
Commercial emails must comply with CAN-SPAM requirements, including providing a clear way to opt out and disclosing the sender's physical address.
Question 5: Under TREC rules, what information must appear on a licensee's business card?
- Only the licensee's name and phone number
- The licensee's name and the sponsoring broker's name at minimum (Correct answer)
- The license number, broker's name, and office address
- The MLS ID and brokerage logo
Correct answer: The licensee's name and the sponsoring broker's name at minimum
At a minimum, TREC requires that business cards identify the licensee and their sponsoring broker so consumers know who they are dealing with.
Question 6: A licensee who advertises properties on a website without TREC approval of the website is:
- In violation if the site does not display broker name and contact information (Correct answer)
- Always in compliance since websites have no TREC requirements
- In violation only if the site is paid advertising
- Required to register the website with TREC
Correct answer: In violation if the site does not display broker name and contact information
TREC advertising rules apply to all media including websites — the site must identify the sponsoring broker and comply with all standard advertising requirements.
TREC TREC Advertising Rules 2
Which of the following is prohibited in Texas real estate advertising under TREC rules?