Typically illegal for real estate brokers, a real estate blind ad is an advertisement that does not identify the person or professional status of the ad-placer but instead only includes basic contact information
You have probably come across one at some point in your life: an advertisement in which the identity of the seller is entirely unclear. It could be a classified ad in the newspaper selling an automobile, it could be an unknown employer advertising an upcoming job position, or it could even be a sign with a picture of a house and a phone number asking you to call for more information. These are known as blind ads.
While blind advertising is acceptable for many people, it is generally not allowed for real estate agents or real estate brokers. In the United States, real estate advertising is strictly regulated. To represent another party in a real estate transaction, you must have the appropriate license. In most states, professionals are required to disclose the fact that they are acting as a real estate broker or real estate agent whenever they advertise the sale of a specific piece of property.
Blinds Ads are Usually Illegal
For a wide variety of different reasons, most states have outlawed the use of blind advertising for real estate brokers. If a real estate agent is listing a specific piece of property, they are generally required to disclose their identity as well as their professional status as a real estate broker within the advertisement.
A real estate advertisement that contains only a phone number, a Post Office box, or an email address is generally considered to be a blind advertisement. For the most part, this type of advertising is prohibited. Only property owners can engage in blind advertising. With advertising changing in the modern era, from classified craigslist ads and banner ads on websites, to social media posts and photographic displays, it is more important than ever that real estate brokers use advertising techniques that conform to their state’s regulations.
Notably, regulators typically disallow the use of ads that would mislead a reasonable customer into thinking that a property is for sale by owner (FSBO) when it is actually being offered by a real estate broker. When reading most states’ real estate advertising rules, you will find regulatory language that explicitly states that real estate ads must be presented in a manner so as to make it clear to the general public that the property is being offered by a broker/brokerage firm and not by a private individual.
Real Estate Professionals Must Understand Advertising Regulations
Real estate brokers and real estate salespersons need to have a comprehensive understanding of the advertising regulations that will affect their professional career. While there are certainly some overlapping rules between the different states, many individual states also have their unique quirks. When studying for the real estate exam, you should carefully review these rules. You should expect questions on advertising on the licensure examination.
Further, you want to protect your career. Running afoul of real estate advertising regulations could get a real estate professional in very serious trouble. In the worst case scenario, a person’s real estate license could even be suspended or revoked by a state authority. Before placing any real estate advertisement, it is crucial that brokers and brokerage firms know what needs to be included in order to ensure that they do not violate their state’s law on blind real estate advertising.
Are You Ready to Become a Real Estate Broker?
If you are ready to begin your career as a real estate broker or salesperson, you will need to pass the licensure exam. This test can seem like a daunting obstacle, and with good reason: nearly half of all real estate exam-takers nationwide fail. Fortunately, with proper preparation, you can pass your state’s exam. Our team has put together the best real estate prep guide to help you.
We offer a full range of real estate practice exams that are fully updated for 2018. We have materials available for all 50 U.S. states. Using our practice tests and carefully-crafted real estate study guides, students have a 95 percent pass rate. From real estate blind ads to complex state-based regulations, our materials will help you understand everything you need to know to pass the test. We are so confident in our system that we offer a 100% money-back guarantee. If you use our study guides and you do not pass the exam, you will get a full refund.