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Practice Of Real EstateLicense_lawHARD

Agent Lisa is affiliated with ABC Realty in Arkansas. She wants to advertise her personal real estate services on social media under the name 'Lisa's Home Finders' without mentioning ABC Realty. A buyer contacts her through this social media page and Lisa shows the buyer a property, intending to later disclose her brokerage affiliation at closing. Under AREC advertising rules and Arkansas license law, which statement best describes Lisa's conduct?

Correct Answer

D) Lisa's conduct violates AREC advertising rules because all advertising must identify the affiliated brokerage

Under AREC advertising rules, all advertising by a licensee — including social media — must clearly identify the affiliated brokerage. Advertising under a personal trade name ('Lisa's Home Finders') without identifying ABC Realty constitutes a 'blind ad,' which is prohibited. The brokerage identification requirement applies to all forms of advertising, including digital and social media platforms. Lisa's failure to include ABC Realty in her social media advertising violates AREC rules from the moment the ad is published, regardless of her intent to disclose later.

Answer Options
A
Lisa's conduct is permissible because social media is not considered formal advertising under AREC rules
B
Lisa's conduct is permissible as long as she discloses her brokerage affiliation before the purchase contract is signed
C
Lisa's conduct is permissible because agents are allowed to use trade names independently of their brokerage
D
Lisa's conduct violates AREC advertising rules because all advertising must identify the affiliated brokerage

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Related Topics & Key Terms

Key Terms:

advertising_rulesblind_adssocial_mediabrokerage_identificationarec_rules

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