Advertising Rules for Texas Licensees

Start Here

Texas advertising questions look like marketing questions.

They are really public-protection questions.

The exam is asking:

Could this advertisement mislead the public about who is licensed, who is responsible, what brokerage is involved, what property is being offered, what compensation exists, or what role the license holder played?

That is the whole topic.

A sponsored sales agent advertises as "Lone Star Realty." A team uses a name ending in "Associates." A social media post includes the agent's handle but hides the broker's name on an unrelated profile page. A license holder says "just sold" on a property they did not help sell. A buyer rebate ad leaves out restrictions. An agent promotes an inspector and expects a fee if clients use that inspector. A business card shows a sales agent's phone number in huge type and the broker's name in tiny print.

Those are advertising-rule questions.

They are not tested because TREC cares about font design.

They are tested because advertising can confuse consumers about responsibility and authority.

Use this sentence:

Texas advertising must clearly identify the responsible brokerage structure and must not create a misleading impression.

If you remember that, the details start making sense.

Table Of Contents

• What Pearson is testing
• The advertising map
• What counts as an advertisement
• Required ad information
• Broker name rule
• Team names
• Assumed business names
• Alternate names
• Sales-agent name traps
• Online advertising and social media
• Misleading advertising
• Property-status ads
• Rebate and service-provider ads
• Broker responsibility
• Residential rental locator ads
• Decision tree
• Mini scenarios
• Practice questions
• FAQ

What Pearson Is Testing

Pearson's 2026 Texas Sales Agent state-law outline gives Standards of Conduct 9 scored items.

The outline lists:

• Professional ethics and conduct.
• Grounds for discipline.
• Unauthorized practice of law.
• Trust accounts.
• Splitting fees.
• Rebates.
• Advertising.

Advertising can also overlap with:

• Broker responsibility.
• Assumed names.
• Team names.
• Inactive status.
• Unlicensed activity.
• Fee splitting and rebates.
• Service-provider compensation.
• Complaints and discipline.

The exam may ask a clean rule question:

What information must appear in a Texas real estate advertisement?

It may also ask a scenario:

A sales agent advertises as Austin Luxury Realty with only the sales agent's cell number. The sponsoring broker's name appears in tiny print at the bottom.

That question is testing:

• Whether the ad makes the sales agent look like the brokerage.
• Whether the broker name is readily noticeable.
• Whether the broker-name size rule is satisfied.
• Whether the name is registered and proper.
• Whether the public could be misled.

Do not treat advertising as a branding preference.

Treat it as conduct.

The Advertising Map

Use this table as your study map.

The short version:

Name, broker, role, truth, registration, status, compensation.

What Counts As An Advertisement

TREC Rule 535.155 defines advertisement broadly.

For exam purposes, an advertisement is communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services.

That includes:

• Publications.
• Brochures.
• Radio.
• Television.
• Electronic media.
• Email.
• Text messages.
• Social media.
• Internet posts.
• Business stationery.
• Business cards.
• Displays.
• Signs.
• Billboards.
• Building signs.
• Promotional items.
• Sponsorship materials.

TREC's rule says advertisement does not include:

• Communication from a license holder to the license holder's current client.
• A directional sign that may contain only the broker's name or logo.

The exam trap is thinking:

It was only Instagram.

or:

It was only a text.

That does not make it invisible. Social media and texts can be advertisements.

Required Ad Information

Each Texas real estate advertisement must include:

1. The name of the license holder or team placing the advertisement.
2. The broker's name.

Both must be in a readily noticeable location.

That phrase matters.

The answer is not:

Somewhere, if the consumer searches hard enough.

It is:

Readily noticeable.

For exam purposes, if the broker name is hidden, too small, missing, or disconnected from the ad, be suspicious.

Also remember:

• There is no requirement that a phone number or email address in the ad belong to the broker.
• There is no requirement to put a license number on a sign or other advertising.
• If a sales agent's name or team name appears on a building sign or promotional item, the broker's name must also be present under the rule.
• A broker's name alone can be okay in some contexts.

The exam will often give you one missing or misleading detail.

Find it.

Broker Name Rule

The broker-name size rule is one of the most testable advertising facts.

Rule 535.155 says the broker's name must be at least half the size of the largest contact information for any sales agent, associated broker, or team name contained in the advertisement.

Contact information includes more than phone numbers.

It can include:

• Name.
• Phone number.
• Email address.
• Website.
• Social media handle.
• Scan code.
• Similar contact details.

That means an ad can fail even when the broker name exists.

Example:

Maria Lopez Team
555-111-2222
Sponsored by Hill Country Homes Brokerage

If the team name and phone number are huge and the broker's name is tiny, the issue is not "broker name absent."

The issue is size and noticeability.

The broker name must be meaningfully visible.

Team Names

TREC Rule 535.154 defines team name as a name used by one or more license holders sponsored by or associated with the same broker that performs real estate activities under an exclusive collective name other than the broker's licensed name or assumed business name.

Exam version:

A team name is a group identity under the broker, not an independent brokerage identity.

Team-name rules:

• A team name may not include terms that could mislead the public to believe the team offers brokerage services independent from the sponsoring broker.
• A team name must end with the word "team" or "group."
• Before an associated broker or sponsored sales agent uses a team name in advertising, the broker must register the name with TREC.
• The broker must notify TREC not later than the 10th day after the associated broker or sponsored sales agent stops using the team name.

TREC's rule specifically flags terms that can imply independent brokerage, including:

• Brokerage.
• Company.
• Associates.

The exam trap:

The name sounds professional, so it must be okay.

Not necessarily.

"Austin Premier Company" sounds polished, but it also sounds like a separate brokerage.

"Garcia Group" may be safer if the broker has registered it, the broker name appears properly, and the ad does not imply independence.

Assumed Business Names

An assumed business name is commonly called a DBA or trade name.

Under TREC Rule 535.154, an assumed business name is a broker business name, not a personal sales-agent brand name.

Before a broker, associated broker, or sponsored sales agent uses the broker's assumed business name in advertising, the broker must:

• Register the name with TREC.
• Provide written evidence of legal authority to use the assumed business name in Texas, such as registration with the Secretary of State or county clerk.

The broker must also notify TREC not later than the 10th day after the broker stops using an assumed business name.

Exam shortcut:

Broker registers assumed business name. Sales agent does not simply invent one.

TREC's FAQ says an individual sales agent cannot use an assumed business name in advertising. A name used by an individual sales agent other than the name on the license or a registered alternate name is treated as a team name and must satisfy team-name requirements.

That is why names like:

White Real Estate
Sally's Spectacular Properties
Austin Home Pros

can become exam traps when used by an individual sales agent.

The issue is not whether the name is catchy.

The issue is whether it misleads the public into thinking the sales agent is operating a brokerage.

Alternate Names

An alternate name is a name used by an individual license holder other than the name shown on the license, such as a middle name, maiden name, or nickname.

TREC says an alternate name does not include a common derivative of a name, such as Kim for Kimberly or Bill for William.

Before a license holder starts using an alternate name in an advertisement, the license holder must register it with TREC using an acceptable process.

The license holder must notify TREC and the sponsoring broker not later than the 10th day after the license holder stops using the alternate name.

For exam purposes:

Alternate name belongs to the individual. Team and assumed business names involve broker registration.

Do not mix the name categories.

Sales-Agent Name Traps

Advertising questions love sales-agent name traps.

The biggest issue:

The ad cannot imply that a sales agent is responsible for operating the brokerage.

Red flags:

• Sales agent identified as broker.
• Sales agent uses title such as owner, president, CEO, or COO in a way that implies responsibility for brokerage operations.
• Sales agent's website or email address implies the sales agent is the broker in charge.
• Sales agent's name is part of the broker's licensed or assumed business name and the ad does not clearly distinguish the sales agent's role.
• Sales agent advertises under a company-style name.
• Associated broker uses "broker" in a way that makes the public think the associated broker runs the brokerage.

TREC's FAQ says if a sales agent's last name is in the broker's licensed or assumed name, the ad should clearly indicate that the sales agent is not the broker. TREC says putting "sales agent" next to the agent's name is one way to help. TREC also says using "REALTOR" or "agent" is not enough to distinguish sales-agent status in that specific situation.

Exam habit:

If the ad makes a sales agent look like the responsible broker, choose the answer that fixes the misleading impression.

Online Advertising And Social Media

Online advertising follows the same rule.

Rule 535.155 says an advertisement includes electronic media, email, text messages, social media, and the Internet.

For social media or text ads, the required information can be on a separate page or on the account profile page if that page is:

• Readily accessible by a direct link from the social media or text.
• Readily noticeable on the separate page or account profile.

That means:

Profile-page disclosure can work, but only if the route is direct and noticeable.

Bad exam facts:

• Broker name buried three clicks away.
• Link goes to a personal bio with no broker identity.
• Social media handle implies the sales agent runs the brokerage.
• Ad contains only the team name and no readily accessible broker information.
• Text ad includes the agent's contact information but no direct route to required broker information.

TREC's FAQ also says URLs and email addresses are not advertisements by themselves. But an advertisement that contains a URL or email address can violate the rule if it includes a title that implies brokerage responsibility or makes the ad misleading or deceptive.

So do not memorize:

URLs never matter.

Better rule:

The full ad matters. If the URL, handle, title, or email creates a misleading impression, it can be a problem.

Misleading Advertising

Rule 535.155 gives a long list of misleading-ad examples.

For the exam, group them into families.

Identity and authority

An ad is a problem if it:

• Identifies a sales agent as a broker.
• Uses a title that implies a sales agent is responsible for brokerage operations.
• Makes an unlicensed person look licensed.
• Uses an unlicensed person's name or likeness without clearly disclosing the person is unlicensed.
• Contains a sales agent name not shown on the license or registered as an alternate name.
• Uses a team name that implies independent brokerage.

Property status and involvement

An ad is a problem if it:

• Creates confusion about permitted property use.
• Implies the advertiser was involved in a transaction when the advertiser had no role.
• Advertises property subject to an exclusive listing without listing broker permission and required listing-broker disclosure, unless waived in writing.
• Continues offering a listed property more than 10 days after the listing agreement ends.
• Advertises a property 10 days or more after closing without including current property status.

Value, rankings, and claims

An ad is a problem if it:

• Makes inaccurate material representations.
• Advertises property value without the required basis or disclosure.
• Ranks a license holder or service provider without objective criteria disclosed in the ad.
• Says or implies the license holder teaches TREC-approved courses with an approved school unless the license holder is approved to do so.

Rebates and service providers

An ad is a problem if it:

• Offers a rebate without required consent disclosure.
• Offers a rebate tied to a required service provider or third-party approval without restriction disclosure.
• Promotes a service provider while expecting compensation and fails to disclose that compensation may be received.

Most advertising questions can be solved with one question:

What false impression would the public get?

Property-Status Ads

Property-status ads are easy to miss.

Rule 535.155 says an ad can mislead if it offers a listed property that is not discontinued within 10 days after the listing agreement is no longer in effect.

It also says an ad can mislead if it is about a property 10 days or more after closing unless the current status of the property is included in the ad.

Exam translation:

Do not keep advertising stale property status as if it is current.

Examples:

• Ad still says "available" after listing expired more than 10 days ago.
• Social post says "for sale" after closing without updating status.
• Website keeps a sold property active in a way that suggests it is currently available.
• "Just sold" card implies the agent sold a property when the agent had no role.

The best answer usually updates, removes, or clarifies the status.

Rebate And Service-Provider Ads

Rebate ads connect advertising to compensation rules.

TREC's FAQ says a seller's agent may advertise a rebate to a buyer, but the ad must disclose that payment of the rebate is subject to seller consent. If the rebate is contingent on restrictions, such as use of a particular service provider, the ad must disclose that payment is subject to restrictions.

Rule 535.155 also says an advertisement can mislead if:

• It offers to rebate compensation to a party but does not disclose that payment is subject to consent of the represented party.
• It offers a rebate contingent on using a specified service provider or third-party approval, such as lender approval, without disclosing restrictions.

Service-provider ads have another rule:

If a license holder offers, recommends, or promotes a service provider and expects compensation if a party uses that service, the ad must disclose that the license holder may receive compensation.

Examples:

• "Use this inspector" with expected compensation.
• Moving-company ad on agent site with expected compensation.
• Repair contractor promotion with expected compensation.
• Home warranty provider promotion with expected compensation.

The safe exam rule:

If money or restrictions sit behind the ad, disclose them.

Broker Responsibility

Advertising is not only the sales agent's problem.

Rule 535.2 says a broker is responsible to ensure sponsored sales agents' advertising complies with Rules 535.154 and 535.155.

TREC's FAQ says TREC does not review a sales agent's advertising for compliance. TREC will discuss advertising questions with a broker directly. It also says the sponsoring broker should review advertising because the broker is responsible for compliance and both the sales agent and broker can be disciplined if an ad violates the rules.

Broker responsibility also includes written policies and procedures.

Exam shortcut:

Sales agent creates the ad. Broker supervises compliance.

If the answer says:

The broker has no responsibility because the sales agent posted it online.

That should feel wrong.

Residential Rental Locator Ads

Residential rental locator advertising has special rules in TREC Rule 535.300.

For most sales-agent candidates, you do not need to master every apartment-locator detail. But you should recognize the pattern:

Rental locator ads must not mislead tenants about unit features, availability, rent, or owner consent.

Rule 535.300 says if a locator advertises multiple apartment units in the same ad and lists amenities or features generally without matching them to a specific rent for a specific unit, the ad must include a qualifying statement.

It also says a general apartment-unit ad is misleading unless, when the ad is placed, at least one unit meeting the description is available through the locator at the lowest rent stated within the stated time or, if no time is stated, not later than the 30th day after the ad is submitted.

Before offering a unit for rent or lease, the locator must obtain consent from the unit's owner or authorized agent.

Exam translation:

Do not advertise apartment features, rent, or availability in a way that makes tenants believe a specific deal exists when it does not.

Signs And Placement

TREC's FAQ says signs can display the words "broker" or "agent," although that wording is not mandatory.

TREC also says it may suspend or revoke a license if the license holder places a sign on a property offering it for lease or rental without written permission of the owner or the owner's authorized agent.

Local sign placement rules can also matter. TREC does not regulate every local sign placement detail, but the license holder is responsible for compliance with applicable rules, restrictions, or local regulations.

Exam examples:

• Sign placed on property without required owner permission.
• Sign placed in a prohibited local location.
• For-lease sign used without authority.
• Building sign with sales agent name but broker name missing.

The safe answer checks authority and compliance.

Decision Tree

Use this for every advertising question.

Step 1: Is it an advertisement?
If it is public-facing and designed to attract brokerage business, probably yes.

Step 2: Does it include the license holder or team name?
If missing, red flag.

Step 3: Does it include the broker's name in a readily noticeable location?
If missing or hidden, red flag.

Step 4: Is the broker's name at least half the size of the largest contact information for a sales agent, associated broker, or team?
If too small, red flag.

Step 5: What name is being used?
Check alternate name, team name, assumed business name, and registration.

Step 6: Could the public think a sales agent, team, or unlicensed person runs the brokerage?
If yes, red flag.

Step 7: Is the property status, rebate, service-provider compensation, ranking, value claim, or transaction role misleading?
If yes, red flag.

Step 8: What should happen?
Fix, remove, update, disclose, register, obtain consent, or involve the sponsoring broker.

Mini Scenarios

Scenario 1: The Missing Broker

A sales agent posts a paid Instagram ad with the agent's photo, phone number, and "Call me for Austin homes." The broker's name is not on the ad or linked profile.

What is being tested?

Required advertising information.

The ad should include the license holder or team name and the broker's name in a readily noticeable location, or use a compliant social/profile setup.

Scenario 2: The Tiny Broker Name

A postcard shows a team name and phone number in large type. The broker name appears in tiny print at the bottom.

What is being tested?

Broker-name size and noticeability.

The broker's name must be at least half the size of the largest contact information for any sales agent, associated broker, or team name in the advertisement.

Scenario 3: The Team That Sounds Like A Brokerage

A team advertises as "Central Texas Brokerage Group."

What is being tested?

Team-name restrictions.

Team names must not include terms that imply independent brokerage services away from the sponsoring broker. "Brokerage" is a red flag.

Scenario 4: The Sales Agent Company Name

A sponsored sales agent advertises as "White Real Estate" with no clear broker identification.

What is being tested?

Misleading assumed-name or team-name use.

TREC's FAQ gives a similar example and says that kind of company-style name can imply the sales agent is in charge.

Scenario 5: The Service Provider

An agent's website promotes a moving company. The agent expects a fee when clients use the company but does not disclose that compensation may be received.

What is being tested?

Service-provider compensation disclosure.

If the license holder promotes a service provider and expects compensation if a party uses that service, the ad must disclose possible compensation.

Scenario 6: The Old Listing

A license holder's website still shows a property as available more than 10 days after the listing ended.

What is being tested?

Stale property-status advertising.

Rule 535.155 treats failure to discontinue an offered listed property within the rule's time frame as a misleading-ad issue.

Scenario 7: The "Just Sold" Claim

A license holder mails cards implying the license holder sold a recently closed property, but the license holder had no role in that transaction.

What is being tested?

False involvement.

TREC's FAQ warns that a "just sold" ad can mislead if the average person would reasonably think the license holder had a role when they did not.

Scenario 8: The Sales-Agent CEO

A sales agent's profile says "CEO of Premier Homes" and promotes brokerage services under the sponsoring broker.

What is being tested?

Title implying brokerage responsibility.

Rule 535.155 flags titles such as owner, president, CEO, COO, or similar titles when they imply a sales agent is responsible for brokerage operations.

Common Traps

How To Study This Topic

Do not study advertising rules as random formatting.

Study them as consumer confusion rules.

Use this scratch-sheet phrase:

Who is responsible, who is licensed, what is true, and what money is behind the ad?

Then drill the exam families:

• Missing broker name.
• Broker name too small.
• Team name that sounds independent.
• Sales agent name that sounds like brokerage.
• Alternate name not registered.
• Assumed name not registered by broker.
• Social media profile without required information.
• Rebate without restriction or consent disclosure.
• Service-provider compensation not disclosed.
• False "sold" or transaction involvement claim.
• Stale property status.
• Ranking without objective criteria.
• Rental locator unit/rent/availability issue.

If you can explain those out loud, advertising becomes a scoring topic.

Practice Questions

These are original practice questions written to teach the rule. They are not copied from the Texas exam.

Question 1

A Texas real estate advertisement by a sales agent must include:

A. The sales agent's license number.
B. The name of the license holder or team placing the ad and the broker's name in a readily noticeable location.
C. The agent's personal tax ID.
D. The seller's Social Security number.

Answer: B.

Rule 535.155 requires the license holder or team name and the broker's name.

Question 2

A postcard shows the team phone number in large type and the broker name in very small print. What is the best issue?

A. Broker-name size and noticeability.
B. Homestead exemption.
C. Appraisal math.
D. Deed delivery.

Answer: A.

The broker's name must be at least half the size of the largest contact information for any sales agent, associated broker, or team name in the ad.

Question 3

A sales agent advertises as "White Real Estate" while sponsored by a broker. What is the best concern?

A. It may imply the sales agent is operating a brokerage.
B. It is always required by TREC.
C. It avoids the need for broker identification.
D. It is allowed if the agent has a website.

Answer: A.

TREC warns that company-style names can imply the sales agent is in charge.

Question 4

Which team name is most likely a red flag?

A. Garcia Group.
B. Lopez Team.
C. Central Texas Brokerage Group.
D. Hill Team.

Answer: C.

Team names may not use terms that imply independent brokerage services. "Brokerage" is a red flag.

Question 5

A license holder posts a social media ad. The required broker information is on the profile page. When can that be acceptable?

A. Only if the profile is private.
B. If the profile or separate page is directly linked, readily accessible, and the information is readily noticeable.
C. Never, because social media is unregulated.
D. Only if no phone number is used.

Answer: B.

Rule 535.155 allows required information on a social media profile or separate page only when the access and noticeability conditions are met.

Question 6

A license holder advertises a rebate to a buyer but does not disclose that the rebate is subject to the seller's consent. The license holder represents the seller. What is the issue?

A. Missing rebate consent disclosure.
B. No issue because all rebates are automatic.
C. Unauthorized practice of law only.
D. Survey deletion.

Answer: A.

Rebate advertisements must disclose required consent or restrictions when applicable.

Question 7

A license holder promotes a service provider and expects compensation if a party uses that provider. What must the ad generally disclose?

A. That the license holder may receive compensation.
B. The license holder's personal bank account.
C. The seller's tax return.
D. Nothing, because provider ads are exempt.

Answer: A.

Rule 535.155 flags ads that promote service providers without disclosing expected compensation.

Question 8

A website advertises a listed property as available more than 10 days after the listing agreement ended. What is the likely issue?

A. Stale property-status advertising.
B. Proper broker supervision.
C. Mortgage qualifying ratio.
D. Homestead tax cap.

Answer: A.

Rule 535.155 treats failure to discontinue an offered listed property within the rule's timing as a misleading-ad issue.

Question 9

A license holder mails "Just Sold" postcards implying the license holder sold a property, but the license holder had no role in that transaction. What is the problem?

A. The ad may falsely imply transaction involvement.
B. The ad is required after every closing.
C. The ad is allowed if colorful.
D. The ad avoids broker responsibility.

Answer: A.

Texas advertising rules prohibit misleading impressions about a license holder's involvement in a transaction.

Question 10

Who registers a team name before an associated broker or sponsored sales agent uses it in advertising?

A. The broker.
B. The buyer.
C. The title company.
D. The lender.

Answer: A.

Rule 535.154 says the broker registers the team name.

Question 11

Which statement is best about a sales agent's advertisement?

A. The broker has no responsibility if the agent posts online.
B. The sponsoring broker is responsible for ensuring sponsored sales-agent advertising complies with TREC rules.
C. TREC pre-approves every sales-agent ad.
D. Broker name is never required on social media.

Answer: B.

Broker responsibility applies to sponsored sales-agent advertising.

Question 12

What is the best short rule for Texas real estate advertising?

A. Creativity controls.
B. The ad must identify the responsible brokerage structure and avoid misleading the public.
C. Any team name is allowed if clients like it.
D. Online ads are exempt.

Answer: B.

Texas advertising rules are about clear identity, broker responsibility, and truthful public-facing claims.

Final Checklist

Before you move on, make sure you can explain these:

• Pearson lists advertising under Texas Standards of Conduct.
• TREC Rule 535.154 covers alternate names, team names, and assumed business names.
• TREC Rule 535.155 covers advertisements.
• Ads must include the license holder or team name and the broker's name.
• The broker's name must be in a readily noticeable location.
• The broker's name must be at least half the size of the largest relevant contact information.
• Social media and text ads can be advertisements.
• Required information for social or text ads may be on a linked profile or separate page only if directly accessible and readily noticeable.
• Team names must end with team or group.
• Team names may not imply independent brokerage services.
• Broker registers team names and assumed business names.
• Individual sales agents do not simply create assumed business names.
• Alternate names must be registered before use when required.
• Ads cannot imply a sales agent operates the brokerage.
• Ads cannot mislead about unlicensed people, property status, value, transaction involvement, rebates, service-provider compensation, rankings, or TREC-approved teaching.
• Brokers are responsible for sponsored sales-agent advertising compliance.

How This Connects To Other Texas Topics

Advertising connects to:

• Standards of conduct and grounds for discipline, because misleading advertising is a conduct issue.
• License maintenance, CE, sponsorship changes, inactive status, assumed names, and place of business, because assumed names and team names sit near license-maintenance issues.
• Broker-sales agent relationships and supervision, because brokers supervise sponsored-agent advertising.
• Splitting fees, rebates, and who may be paid, because rebate and service-provider ads connect to compensation rules.
• Complaints, investigations, hearings, and appeals, because advertising violations can become complaint facts.

Advertising is one of those topics that feels simple until a scenario hides the problem in a name, profile, caption, phone number, rebate, or old listing status.

Frequently Asked Questions

Is advertising on the Texas real estate exam?

Yes. Pearson's Texas Sales Agent state-law outline lists advertising under Standards of Conduct, which has 9 scored state-law items. Advertising can also show up in broker responsibility, assumed name, and complaint questions.

What must be included in a Texas real estate advertisement?

TREC Rule 535.155 requires each advertisement to include the name of the license holder or team placing the ad and the broker's name in a readily noticeable location. The broker's name must be at least half the size of the largest contact information for any sales agent, associated broker, or team name in the ad.

Does a Texas real estate ad need a license number?

No. TREC's FAQ says a license holder is not required to put the license number on a sign or other advertising.

Do social media ads count as advertising?

Yes. TREC's advertising definition includes social media, electronic media, email, text messages, the Internet, and other public-facing communications designed to attract brokerage business.

Can a Texas sales agent use an assumed business name?

An individual sales agent cannot simply use an assumed business name as a personal brand. TREC's FAQ says a name used by an individual sales agent other than the license name or registered alternate name is considered a team name and must meet team-name requirements.

What makes a team name improper?

A team name may not include terms that could mislead the public into thinking the team offers brokerage services independent from the sponsoring broker. Team names must end with "team" or "group" and must be registered by the broker before use.

Can a Texas agent advertise a buyer rebate?

Yes, but the ad must comply with TREC's rebate advertising rules. If consent or restrictions apply, the ad must disclose them. The sales agent also needs sponsoring-broker authorization to offer a rebate.

Can an agent advertise a service provider on a website?

Yes, but if the license holder offers, recommends, or promotes a service provider and expects compensation if a party uses that service, the ad must disclose that the license holder may receive compensation.

Can TREC pre-review a sales agent's ad?

TREC's FAQ says it does not review a sales agent's advertising. It will discuss advertising questions with the broker directly. The sponsoring broker should review advertising because broker responsibility applies.

Can the Texas real estate exam prep app help me practice this?

Yes. The Texas real estate exam prep app can help you practice advertising rules, broker identification, team names, assumed names, alternate names, social media ads, misleading ads, rebate disclosures, service-provider ads, property-status ads, and broker-responsibility scenarios with original Texas-focused explanations. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Is this article advertising-compliance advice?

No. This is educational exam prep. For real-world advertising, broker review, team names, assumed names, alternate names, rebate ads, service-provider ads, social media, signs, website copy, complaint risk, or discipline questions, verify current official sources and consult your sponsoring broker, attorney, compliance professional, or other qualified professional.

Primary-Source Verification Note

This article was verified on June 16, 2026 against the Pearson VUE Texas Real Estate Content Outlines effective January 1, 2026, TREC Rule 535.154 on alternate names, team names, and assumed business names, TREC Rule 535.155 on advertisements, TREC Rule 535.2 on broker responsibility, TREC Rule 535.300 on residential rental locator advertising, and TREC's advertising FAQ. Advertising rules, forms, and TREC guidance can change, so always verify the current official source before relying on an advertising rule in practice.

Sources And Methodology

• Pearson VUE Texas Real Estate Content Outlines
• TREC Rules
• TREC Frequently Asked Questions
• TREC complaint process

I wrote this as an exam-prep guide, not a marketing compliance manual. The method was to start with Pearson's tested outline, map TREC's advertising rules into candidate-friendly decision points, separate name registration from broker identification, then turn the most common misleading-ad traps into original practice questions.