THE EXAM RULE IN ONE LINE
Identify the license holder or team, make the responsible broker easy to see, and do not create a false impression. This guide is exam preparation, not a substitute for a broker's advertising review or legal advice.
What should you memorize first?
Start with three rules:
- Show the name of the license holder or team placing the advertisement.
- Show the broker's name in a readily noticeable location.
- Make the broker's name at least half the size of the largest contact information for any sales agent, associated broker, or team in the advertisement.
The current TREC rule text defines contact information broadly. It includes a name, phone number, email address, website, social-media handle, scan code, or similar information used to contact a featured license holder.
These do not always have to be two different names. TREC's FAQ says a broker's name alone can be acceptable on a promotional item or building sign. If a sales agent's name or team name appears, the broker's name must also appear and satisfy the half-size rule. The rule does not require the broker's phone number or a license number in every advertisement.
| If the facts say this | Check this rule |
|---|---|
| Broker name is missing | Required advertiser and broker identification must appear |
| Broker name is tiny | Half-size rule and readily noticeable placement |
| Team sounds like a separate brokerage | Team-name restrictions |
| Agent uses a nickname or brand | Alternate-name or team-name registration |
| Required names live on a profile | Direct-link social-media conditions |
| Property is no longer active | Ten-day status rules |
| Rebate or referral money is hidden | Compensation disclosures |
| Post implies the agent handled a sale | Misleading transaction-role claim |
What counts as a Texas real estate advertisement?
Rule 535.155 covers public communication by or for a license holder that is designed to attract people to use brokerage services. The definition includes print, radio, television, email, text messages, social media, websites, business stationery, business cards, displays, signs, and billboards.
Two exclusions matter:
- a communication from a license holder to that license holder's current client
- a directional sign that contains only the broker's name or logo
The exam trap is the medium. A sales agent's public Instagram post, marketing text, business card, or promotional item can be an advertisement even when it does not look like a traditional property listing.
How does the half-size broker-name rule work?
Compare the broker's name with the largest contact information for a sales agent, associated broker, or team. The broker's name must be at least half that size.
Suppose a postcard uses a 40-point team name, a 32-point team phone number, and a 12-point broker name. The broker is identified, but 12 points is less than half of 40. The ad fails the size benchmark.
Do not compare the broker's name with every decorative element. A large headline such as "Homes Near Downtown" is not automatically contact information. A team name, agent name, phone number, URL, handle, or scan code can be.
TREC also explains that a logo containing the broker's full name may satisfy the name requirement, but the broker's name inside the logo must itself meet the size test. The size of the entire logo is not the measurement.
Team, assumed-business, and alternate names
Rule 535.154 controls how advertising names are registered and used. These three categories are easy to confuse.
| Name type | What it means | Who registers it | Key exam rule |
|---|---|---|---|
| Team name | A collective name used by one or more license holders under the same broker | Broker | Must end in "team" or "group" and must not imply an independent brokerage |
| Assumed business name | A broker's DBA or trade name | Broker | Broker must register it and show legal authority to use it in Texas |
| Alternate name | An individual license holder's name other than the licensed name | Individual license holder | Register before advertising, unless it is a common derivative such as Bill for William |
The TREC advertising-name guidance identifies "brokerage," "company," and "associates" as words that can make a team sound independent. "Central Texas Brokerage Group" remains a problem even though it ends in "group."
An individual sales agent cannot create a personal assumed business name. If the agent uses a name other than the licensed name or a registered alternate name, TREC treats it as a team name. The broker must register the team name before it is advertised.
The 10-day name notices
Registration happens before use. The separate 10-day rule applies when use stops:
- A license holder must notify TREC and the sponsoring broker no later than the 10th day after stopping use of an alternate name.
- A broker must notify TREC no later than the 10th day after an associated broker or sponsored sales agent stops using a team name.
- A broker must notify TREC no later than the 10th day after the broker stops using an assumed business name.
Do not turn that into a 10-day grace period for starting to advertise. There is no such grace period in Rule 535.154.
Can required information live on a social-media profile?
Yes, but only for a social-media or text advertisement and only when both conditions are met. The separate page or account profile must be directly linked from the advertisement, and the required information must be readily noticeable there.
| Setup | Likely result |
|---|---|
| Ad links directly to a profile where both names are prominent | Can satisfy Rule 535.155 |
| Broker name is buried several clicks away | Does not satisfy the direct-access rule |
| Profile lists only the team name | Missing required broker identity |
| Handle makes a sales agent look like the brokerage owner | Can still create a misleading impression |
A URL or email address is not necessarily an advertisement by itself. Once it appears within an advertisement, however, its wording can contribute to the overall impression. A handle such as @AlexOwnsTheBrokerage is not rescued merely because it is a handle.
Advertising disclosure is not the same as IABS or CPN posting
Rule 535.155 covers advertising identity and misleading impressions. The Information About Brokerage Services notice and Consumer Protection Notice have separate requirements under Rules 531.20 and 531.18.
TREC specifically warns that the social-media rules are not identical. If a social-media profile meets the rule's definition of a business website, the separate IABS and Consumer Protection Notice posting rules apply even when an individual advertisement satisfies Rule 535.155. Learn each rule for its own job.
Which advertisements are misleading under Rule 535.155?
The rule lists examples rather than relying only on a general command to be truthful. Group them by the false impression they create.
Identity and authority
An advertisement can be misleading when it:
- identifies a sales agent as a broker
- uses a title, email, or website suggesting a sales agent operates the brokerage
- uses an improper team name
- uses an unregistered sales-agent name
- makes an unlicensed person appear licensed
- shows an unlicensed person's name or likeness without clearly disclosing that the person is unlicensed
If a sales agent's name is also part of the broker's name, the advertisement must not imply that the agent runs the brokerage. TREC's FAQ says placing "sales agent" next to the person's name is one way to clarify the role. In that specific situation, "agent" or "REALTOR" alone is not enough.
Property claims, status, and involvement
An advertisement can also mislead when it:
- contains a materially inaccurate representation
- confuses the permitted use of a property
- makes an unsupported property-value claim under the rule
- implies the advertiser participated in a transaction when the advertiser had no role
- advertises an exclusively listed property without the listing broker's permission and required broker disclosure
- continues offering a property more than 10 days after the listing agreement ends
- discusses a property 10 days or more after closing without stating its current status
- publishes a ranking without disclosing the objective criteria used
The two property-status rules are different. After a listing ends, the offered property must be discontinued within 10 days. For an advertisement about a property 10 days or more after closing, the current status must be included.
Rebates and service-provider compensation
A rebate advertisement must disclose that payment is subject to the consent of the party represented by the license holder. If payment depends on using a specified service provider or obtaining third-party approval, the advertisement must disclose that restrictions apply.
If a license holder promotes another real estate service provider and expects compensation when a party uses that provider, the advertisement must disclose that the license holder may receive compensation.
Disclosure does not make every payment lawful. Fee-splitting, settlement-service, and other compensation rules still apply. Use the Texas compensation and rebate guide for that separate analysis.
What the exam is testing
The Pearson VUE Texas content outline places Advertising under Standards of Conduct. That whole category has 9 scored questions on the Texas sales-agent state-law portion. Pearson does not publish a separate number for advertising.
An advertising question usually asks you to spot one controlling defect. Use this order:
- Is the communication an advertisement?
- Are the license holder or team name and broker name present?
- Is the broker's name readily noticeable and large enough?
- Is every advertised name properly classified and registered?
- Does the ad imply that a sales agent, team, or unlicensed person operates the brokerage?
- Is a property fact, status, role, ranking, rebate, or compensation arrangement misleading?
- Is the broker supervising the advertisement?
The broker-supervision point matters. Rule 535.2 makes the broker responsible for ensuring that a sponsored sales agent's advertising complies with Rules 535.154 and 535.155.
Five worked advertising scenarios
1. The broker name is present but too small
An ad shows "Ramirez Group" at 36 points and the broker's name at 14 points.
Answer: The ad fails the half-size test. Half of 36 is 18, so a 14-point broker name is too small. The broker name must also be readily noticeable.
2. The profile carries the disclosure
A sponsored post links directly to the team's public profile. The team and broker names are prominent on that profile, and the broker name meets the size rule.
Answer: Rule 535.155 permits this arrangement for social-media and text advertisements because the profile is directly linked and the information is readily noticeable. Check IABS and Consumer Protection Notice duties separately if the profile is a business website.
3. The team name sounds independent
A broker registers "Hill Country Brokerage Group" as a team name.
Answer: Registration does not cure the wording. "Brokerage" implies an operation independent from the sponsoring broker, so the name is misleading under Rules 535.154 and 535.155.
4. The old listing remains available
A website still offers a home 12 days after the listing agreement ended.
Answer: The rule treats failure to discontinue the offered listing within 10 days as misleading advertising. Remove or update the offer.
5. The provider payment stays hidden
An agent recommends an inspection company on a marketing page and expects a fee for each client who hires it. The page does not mention the payment.
Answer: The advertisement must disclose that the license holder may receive compensation. Then analyze separately whether the payment is lawful.
APPLY THE RULE
Can you spot the defect before the answer choices distract you?
Practice the complete Standards of Conduct area, including advertising, rebates, trust accounts, discipline, and unauthorized practice of law.
Common advertising traps
| Trap | Why it fails |
|---|---|
| "The broker name appears somewhere" | Presence alone does not satisfy size and noticeability |
| "The team name was registered" | Registration does not cure misleading brokerage language |
| "It was only a text" | Text messages can be advertisements |
| "The broker did not make the post" | Broker supervision still applies to sponsored-agent advertising |
| "The seller approved the rebate" | The advertisement must still make required consent and restriction disclosures |
| "The post says just sold" | It cannot imply transaction involvement that did not occur |
| "The property closed last week" | At 10 days or more after closing, the current status must appear |
| "Disclosure makes the referral fee legal" | Advertising disclosure and payment legality are separate questions |
Do not confuse the other advertising layers
Rule 535.155 is not the only law that can affect marketing. Keep these topics separate on the exam:
| Issue | Main source | What it controls |
|---|---|---|
| Brokerage identity and misleading ads | TREC Rule 535.155 | Required names, broker prominence, misleading impressions |
| Advertising-name registration | TREC Rule 535.154 | Team, assumed-business, and alternate names |
| IABS and Consumer Protection Notice | TREC Rules 531.20 and 531.18 | Notices on business websites and qualifying social profiles |
| Discriminatory housing advertising | Texas Property Code 301.022 and federal fair-housing law | Preferences, limitations, or discrimination in dwelling ads |
| Marketing calls, texts, and email | Federal and state outreach rules | Consent, calling restrictions, opt-outs, and sender duties |
An ad can satisfy the broker-name rule and still violate fair-housing law. It can also satisfy Rule 535.155 while a business website separately lacks a required notice. Solve the rule the question actually presents.
Quick knowledge check
A team phone number is 30 points. How large must the broker's name be?
At least 15 points, because the broker's name must be at least half the size of the largest relevant contact information. It must also be readily noticeable.
Who registers a team name?
The broker registers a team name before an associated broker or sponsored sales agent uses it in advertising.
Can a sales agent use a personal DBA?
No. A name used by an individual sales agent other than the licensed name or registered alternate name is treated as a team name and must meet the team-name rules.
Can broker information sit on a linked social profile?
Yes, for a social-media or text advertisement, if the profile or separate page is directly linked and the required information is readily noticeable there.
Does the half-size rule apply only to phone numbers?
No. Contact information includes names, phone numbers, email addresses, websites, social-media handles, scan codes, and similar contact details.
Frequently asked questions
Does every Texas real estate advertisement need the broker's name?
Rule 535.155 requires the broker's name and the name of the license holder or team placing the advertisement. A directional sign containing only the broker's name or logo is excluded from the rule's advertisement definition.
Does a Texas real estate ad need a license number?
TREC's advertising FAQ says a license number is not required on a sign or other advertising. Do not confuse a license number with the required broker and license-holder or team names.
Must a team name end in team or group?
Yes. Rule 535.154 requires a team name to end with "team" or "group." It must also avoid language suggesting that the team offers brokerage services independently from its sponsoring broker.
Is a current-client text an advertisement?
Not under Rule 535.155's definition when it is a communication from a license holder to that license holder's current client. Other duties can still govern the communication.
Who is responsible for a sales agent's advertising?
The sales agent must follow the rules, and Rule 535.2 makes the sponsoring broker responsible for ensuring sponsored-agent advertising compliance.
Can TREC approve an ad before it is published?
TREC's FAQ says the agency does not review a sales agent's advertising for compliance. It directs advertising questions through the broker, which reinforces the broker's supervision role.
Sources and verification
The rule statements on this page were rechecked September 5, 2026. The current Pearson outline is publication 094401, dated January 2026, with the Texas sales-agent state-law outline effective January 1, 2026.
Official sources
- TREC Rules 535.2, 535.154, and 535.155
- TREC advertising frequently asked questions
- TREC social-media advertising guidance
- Pearson VUE Texas Real Estate Content Outlines, publication 094401
- Texas Property Code Chapter 301
- 42 U.S.C. Section 3604, federal fair-housing prohibitions
This page teaches the Texas sales-agent exam. It is not legal advice or approval of a real advertisement. Rules, forms, and agency guidance can change. For live advertising, follow current TREC rules and your sponsoring broker's review process.
Turn the rule into recall
Reading the half-size rule once is not the same as recognizing it inside a scenario. Run a short Standards of Conduct session in your browser, then continue on your phone if that fits your study routine.
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