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Practice Of Real EstateLicense_lawMEDIUM

David, a licensed Michigan salesperson, places a 'For Sale By Owner' style yard sign on a listing he obtained for his client, omitting any reference to his brokerage. He tells his broker that he did this to attract buyers who prefer dealing directly without an agent. Under Michigan law, which of the following is most accurate?

Correct Answer

C) David has violated Michigan advertising rules because the brokerage name must appear on all licensee-placed advertising

Under MCL 339.2512, any advertising placed by a licensed salesperson — including yard signs — must identify the employing broker or brokerage. A yard sign placed by a licensee that omits the brokerage name violates Michigan's advertising rules. The intent behind the omission (attracting FSBO-style buyers) does not create an exception to this requirement.

Answer Options
A
David's sign is permissible because yard signs are considered personal property, not regulated advertising
B
David's sign is permissible if the seller gave written consent to omit the brokerage name
C
David has violated Michigan advertising rules because the brokerage name must appear on all licensee-placed advertising
D
David has violated Michigan law only if a buyer was actually deceived by the sign's omission

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Related Topics & Key Terms

Key Terms:

advertising_rulesyard_signbroker_identificationlicensee_obligations

Related Concepts

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

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.

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