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Practice Of Real EstateLicense_lawEASY

Sarah is a licensed real estate salesperson in Minnesota working under Broker Tom at Lakeland Realty. Sarah posts an ad on social media that says 'Gorgeous 3-bedroom home in Edina — call Sarah at 612-555-0100 for a showing!' The ad does not mention Lakeland Realty or Broker Tom. Under Minnesota law, this advertisement is best described as:

Correct Answer

D) A violation, because the ad does not identify the sponsoring brokerage

Under Minn. Stat. Ch. 82, all advertising by a licensed salesperson — including social media posts — must clearly identify the name of the sponsoring broker or brokerage. Sarah's ad is a classic example of prohibited blind advertising because it contains no reference to Lakeland Realty or Broker Tom. The Minnesota Department of Commerce treats social media as an advertising medium subject to the same rules as print or online advertising.

Answer Options
A
Acceptable, because social media is not considered a formal advertising medium
B
A violation, because salespersons are prohibited from advertising on social media
C
Acceptable, because Sarah's license number is on file with the state
D
A violation, because the ad does not identify the sponsoring brokerage

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Related Topics & Key Terms

Key Terms:

advertising_rulesblind_advertisingsocial_mediasalesperson_duties

Related Concepts

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

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