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Practice Of Real EstateLicense_lawHARD

A Minnesota real estate team called 'The Anderson Team' operates under broker Patricia's brokerage, 'Lake Country Realty.' The team wants to advertise using only the name 'The Anderson Team' on yard signs, business cards, and social media, without mentioning 'Lake Country Realty.' Under Minnesota law, this advertising approach is:

Correct Answer

C) A violation, because the team name must always be accompanied by the sponsoring brokerage's name

Under Minn. Stat. Ch. 82, all advertising by licensees must identify the sponsoring broker or brokerage. A real estate team operating within a brokerage is not an independent licensed entity, and its advertising must include the name of the sponsoring brokerage. 'The Anderson Team' advertising without 'Lake Country Realty' constitutes blind advertising, which is prohibited regardless of how well-known the team name may be.

Answer Options
A
Permissible, because real estate teams are treated as independent entities under Minnesota law
B
Permissible, if the team name is registered as a separate trade name with the Minnesota Department of Commerce
C
A violation, because the team name must always be accompanied by the sponsoring brokerage's name
D
A violation, because real estate teams are prohibited from using team names in Minnesota advertising

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Related Topics & Key Terms

Key Terms:

advertising_rulesteam_advertisingblind_advertisingbrokerage_identification

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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