Advertising

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Advertising

Q:  What can I do in my adverting and what can’t I do?
A:  First and foremost, an advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not be false or misleading.

NRS 645.315 provides that a broker-salesman or salesman must disclose the name of the brokerage with whom the licensee is associated and that the licensee cannot advertise solely under the licensee’s own name.  All advertising must be done under the direct supervision of the broker.  
 
NAC 645.610 states that the name of the brokerage firm under which a real estate licensee is associated must be clearly identified with prominence in any advertisement. In determining whether the name of the brokerage firm is identified with prominence, the Division shall consider, without limitation, the style, size and color of the type or font used and the location of the name of the brokerage firm as it appears in the advertisement.

As used in this section, “advertisement” includes, without limitation:
     (a) Any unsolicited printed material and any broadcast made by radio, television or electronic means, including, without limitation, by unsolicited electronic mail and the Internet, billboards and signs; and
     (b) Business cards, stationery, forms and other documents used in a real estate transaction.

Furthermore Nevada law states that if the licensee has an ownership interest in the advertised property, the advertisement contains:
          (1) If the licensee is a real estate broker, the words “for sale by owner-broker,” “for lease by owner-broker” or substantially similar words; or
          (2) If the licensee is an agent, the words “for sale by owner-agent,” “for lease by owner-agent” or substantially similar words.

 

I get many questions on the Legal Information Line about advertising, and advertising as a “Team”. The real estate statutes and regulations have several rules about advertising and about teams.  They are attached to the end of this article for your reference, with highlights of important provisions.

Q: How do we advertise if we are a team?  



ADVERTISING

•    First, an advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not be false or misleading. NAC 645.610(1)(a).
•    Second, if the licensee is a real estate broker, broker-salesperson or salesperson, he/she must disclose the name of the brokerage with whom he/she is associated in his/her advertising. NAC 645.610(1)(c)
•    Third, the licensee shall not advertise solely under his/her own name; all advertising must be done in the name of the brokerage with whom he/she is associated and under the direct supervision of the broker. NRS 645.315(2).
•    Fourth, in any advertising by the licensee, the name of the brokerage firm under which he/she does business or is associated must be clearly identified with prominence. NAC 645.610 (1c)

TEAM OR GROUP  NAC 645.611 states that a licensee may use the term “team” or “group” to advertise the services provided by the licensee if:
•    First, the use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person is lawfully doing business;
•    Second, the team or group is composed of more than one licensee;
•    Third, the members of the team or group are employed by the same broker;
•    Fourth, the name of the team or group contains the last name of at least one of the members of the team or group; and
•    Fifth, the advertising complies with all other applicable provisions of NRS & NAC 645.

Q: Can an agent use his/her own phone number on the advertisement and not the brokers.

  Yes, a licensee can use his/her own phone number on advertising.  The only requirement is that the brokerage firm must be clearly identified with prominence

I believe the reason people ask me that is that NAC 645.610(1b) says “a licensee shall not use his or her name or telephone number or the name or telephone number of another licensee of the brokerage firm with which the licensee is associated in any advertisement which contains the words “for sale by owner,” “for lease by owner” or similar words. NAC 645. 610 (1b)

NAC 645.610  Restrictions on advertising; use of name under which licensee is licensed. (NRS 645.050, 645.190)
     1.  In addition to satisfying the requirements set forth in NRS 645.315:
     (a) An advertisement of the services of a licensee for which a license is required under chapter 645 of NRS must not be false or misleading.
     (b) Except as otherwise provided in this paragraph, a licensee shall not use his or her name or telephone number or the name or telephone number of another licensee of the brokerage firm with which the licensee is associated in any advertisement which contains the words “words. A licensee may use his or her name or telephone number in an advertisement for property if the for sale by owner,” “for lease by owner” or similar licensee has an ownership interest in the advertised property and the advertisement contains:
          (1) If the licensee is a real estate broker, the words “for sale by owner-broker,” “for lease by owner-broker” or substantially similar words; or
          (2) If the licensee is an agent, the words “for sale by owner-agent,” “for lease by owner-agent” or substantially similar words.
     (c) The name of a brokerage firm under which a real estate broker does business or with which a real estate broker-salesperson or salesperson is associated must be clearly identified with prominence in any advertisement. In determining whether the name of the brokerage firm is identified with prominence, the Division shall consider, without limitation, the style, size and color of the type or font used and the location of the name of the brokerage firm as it appears in the advertisement.
     (d) A licensee shall not publish or cause to be published any advertisement or place any sign that makes any reference to the availability of a specific property which is exclusively listed for sale by another broker unless the licensee obtains the prior written consent of the broker with whom the property is listed. Such consent must not be given or withheld by the listing broker without the knowledge of the owner of the property.
     (e) A licensee shall not advertise or otherwise conduct business under a name, including a nickname, other than the name under which he or she is licensed to engage in business.
     2.  If advertising under the name of a franchise, a broker shall incorporate in a conspicuous way in the advertisement the real, fictitious or corporate name under which the broker is licensed to engage in business and an acknowledgment that each office is independently owned and operated.
     3.  In addition to the provisions of paragraph (a) of subsection 1, a licensee who represents a seller or lessor under an exclusive agency listing agreement or an exclusive right to sell or lease listing agreement shall not advertise any property that is subject to the agreement as “for sale by owner” or otherwise mislead a person into believing that the licensee does not represent the seller or lessor.
     4.  As used in this section, “advertisement” includes, without limitation:
     (a) Any unsolicited printed material and any broadcast made by radio, television or electronic means, including, without limitation, by unsolicited electronic mail and the Internet, billboards and signs; and
     (b) Business cards, stationery, forms and other documents used in a real estate transaction.
     [Real Estate Adv. Comm’n, § VII subsecs. 2 & 3, eff. 10-31-75]—(NAC A by Real Estate Comm’n, 8-21-81; 12-16-82; 4-27-84; 12-27-91; A by Real Estate Div., 3-1-96; A by Real Estate Comm’n by R186-99, 1-21-2000; R111-01, 12-17-2001; R031-04, 11-30-2004; R165-07, 4-17-2008)
NRS 645.315  Conditions and limitations on certain advertisements; required disclosures; prohibited acts.
      1.  In any advertisement through which a licensee offers to perform services for which a license is required pursuant to this chapter, the licensee shall:
      (a) If the licensee is a real estate broker, disclose the name of any brokerage under which the licensee does business; or
      (b) If the licensee is a real estate broker-salesperson or real estate salesperson, disclose the name of the brokerage with whom the licensee is associated.
      2.  If a licensee is a real estate broker-salesperson or real estate salesperson, the licensee shall not advertise solely under the licensee’s own name when acting in the capacity as a broker-salesperson or salesperson. All such advertising must be done under the direct supervision of and in the name of the brokerage with whom the licensee is associated.
      (Added to NRS by 1999, 92; A 2003, 932)
NAC 645.611  Advertisement of services: Use of terms “team” and “group.” (NRS 645.050, 645.190)  A licensee may use the term “team” or “group” to advertise the services provided by the licensee if:
     1.  The use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person is lawfully doing business;
     2.  The team or group is composed of more than one licensee;
     3.  The members of the team or group are employed by the same broker;
     4.  The name of the team or group contains the last name of at least one of the members of the team or group; and
     5.  The advertising complies with all other applicable provisions of this chapter and chapter 645 of NRS.
     (Added to NAC by Real Estate Comm’n by R031-04, eff. 11-30-2004)