A licensed Maryland broker, operating as a sole proprietor under her own name 'Patricia Wells, Broker,' places an online advertisement that reads: 'Beautiful 3BR home in Rockville — Call Patricia Wells 301-555-0200.' No other information is included. Under MREC advertising regulations, is this advertisement compliant?
Correct Answer
A) Yes, because the broker's own name serves as the brokerage identification when she is a sole proprietor
Under Maryland MREC regulations, the advertising requirement is that the brokerage firm must be identified. When a broker operates as a sole proprietor under her own name, the broker's personal name IS the brokerage name. Therefore, 'Patricia Wells, Broker' satisfies the identification requirement because there is no separate brokerage entity to disclose — the broker and the firm are one and the same. This distinguishes sole proprietor brokers from salespersons and associate brokers who must identify a separate supervising broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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