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Real Estate Advertising Violations That Could Cost You Your License

Posted by Joseph D. Lento | May 04, 2025 | 0 Comments

Real estate professionals rely heavily on advertising to attract new clients. However, each state real estate commission has regulations specific to advertising in the industry, and violating those regulations can lead to disciplinary action, including losing the license you've worked so hard to obtain. If you're a real estate professional dealing with licensing issues, it's important to understand the regulations in your area so that you can defend yourself against the allegations.

The Lento Law Firm Professional License Defense Team works with real estate professionals facing disciplinary action. If your real estate license is at risk due to advertising issues, we can help. Contact us by phone at 888-535-3686 or by filling out this confidential contact form.

Understanding Real Estate Advertising Rules

Each state has its own regulations regarding advertising in real estate, but disciplinary action typically revolves around the following few infractions.

  • Misleading or deceptive advertising: The Texas Real Estate Commission prohibits advertisements that mislead or are likely to mislead the public. Many other states have similar laws.
  • Failure to disclose agent information: In many states, including California, solicitation and promotional materials must include the professional's name and license number.
  • Unapproved use of another broker's listing: In many states, brokers need to be careful which listings they advertise. For example, Tennessee real estate professionals can face disciplinary action for advertising a property listed by another broker without that broker's written permission.
  • Improper team branding: Professionals are expected to accurately represent the nature of their brokerage. One example is Virginia, where real estate professionals can be disciplined for misleading the public into believing a team operates as an individual brokerage.

Penalties for Advertising Violations in Real Estate

Disciplinary action against your real estate license can damage your career. At the very least, it may take valuable time away from building and growing your business. Here are a few specific penalties you may face for advertising violations.

  • Public reprimand: No matter the disciplinary action, the damage to your professional reputation can be long-lasting. In addition to media or social networking coverage of the issue, you may face a permanent mark on your license that can follow you for years.
  • Mandatory ethics courses: You may be assigned to attend professional training that reviews the expectations of real estate professionals in your state.
  • Fines and penalties: You may face fines ranging from hundreds to thousands of dollars per violation.
  • License probation: Your license could be put on probation, with the regulatory authority keeping an eye on your activities.
  • Suspension or revocation: In some cases, the licensing authority will choose to revoke your license, either temporarily or permanently.

Legal Help With Advertising Violations

No matter where you live, if you hold a real estate license in that state, you're expected to follow all regulations. This includes laws that apply to advertising your listings and services.

If you're in hot water over real estate licensing, the Lento Law Firm Team can help. We have years of experience with real estate licensing issues and can explain the accusations and help you craft a viable defense. Give us a call at 888-535-3686 or fill out our confidential contact form, and we'll be in touch.

About the Author

Joseph D. Lento

"I pride myself on having heart and driving hard to get results!" Attorney Joseph D. Lento has unparalleled experience fighting for the futures of his professional clients nationwide. With unparalleled experience occupying several roles in the justice system outside of being an attorney, Joseph D. Lento can give you valuable behind-the-scenes insight as to what is happening during all phases of the legal process. In the courtroom and in life, attorney Joseph D. Lento stands up when the bell rings!

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