TREC Advertising Rule 535.155: Broker Name & More

TL;DR

What counts as an advertisement

The reach of §535.155 starts with a deliberately broad definition. An advertisement is any form of communication by or on behalf of a license holder that is designed to attract the public to use real estate brokerage services. The rule then lists examples so there is no doubt: publications, brochures, radio and television, all electronic media including email, text messages, and social media, the internet, business stationery, business cards, displays, signs, and billboards.

Because the definition turns on the purpose — attracting the public to use brokerage services — almost anything a license holder puts in front of the public to generate business qualifies. There are only two carve-outs: a communication from a license holder to that license holder's current client is not an advertisement, and a directional sign that contains only the broker's name or logo is excluded. Everything else a licensee uses to market must comply. For the licensing framework that defines who these license holders are, see our guide to TRELA licensing and TREC enforcement.

The broker-name size rule

The requirement that appears most often on the exam is the broker-name rule in §535.155(a). Every advertisement must contain two things in a readily noticeable location: the name of the license holder or team placing the advertisement, and the broker's name in at least half the size of the largest contact information for any sales agent, associated broker, or team name in the ad.

The purpose is to keep the sponsoring broker visible. A sales agent always works under a broker, and the rule stops an agent's marketing from burying or omitting the broker so that the public understands who actually stands behind the transaction. "Contact information" is defined broadly for this comparison — it includes a name, phone number, email address, website, and social media handle. So if a sales agent's phone number is the largest contact element on a sign, the broker's name must be at least half that size. A broker's name for this purpose includes an assumed business name registered with TREC. For the professional-conduct standards that sit alongside these advertising duties, see our guide to the TREC canons of professional ethics.

Misleading advertising is prohibited

Beyond the identification rules, §535.155 prohibits advertising that misleads or is likely to deceive the public. This includes an advertisement that is inaccurate in any material fact, and — a recurring exam theme — one that implies a sales agent is responsible for operating the brokerage. Using a title such as "owner," "president," or "CEO," or a web or email address that implies the agent runs the brokerage, can make an ad misleading.

Team names get special attention. A team name may not use terms implying the team is a separate brokerage operating independently of its sponsoring broker — words like "brokerage," "company," or "associates" are called out. The through-line is the same principle behind the broker-name rule: the public must not be misled about who the responsible broker is. A sales agent cannot present themselves, through titles or business names, as if they were the brokerage. For how brokers must actually supervise the agents whose ads they are responsible for, see our guide to TREC broker supervision rules.

Rebates, broker responsibility, and correction

Section 535.155 also addresses rebate advertising: an ad offering a rebate must disclose that payment of the rebate is subject to the consent of the party the licensee represents, and if the rebate is contingent on restrictions such as using a particular service provider, the ad must disclose that too. This keeps rebate offers from being presented as unconditional when they are not.

Responsibility for compliance runs up to the broker. A broker is required to ensure that a sponsored sales agent's advertising complies with §535.154 and §535.155 — an agent's advertising violation is the broker's problem as well. Advertising violations are enforced under the Texas Real Estate License Act, §1101.652(b)(23), which authorizes discipline for misleading or deceptive advertising; TREC may impose discipline or administrative penalties for noncompliant advertising. For the companion rule on how names themselves are registered and used, see our guide to the Information About Brokerage Services requirements.

Frequently Asked Questions

What does TREC rule 535.155 require in an advertisement?

Under 22 TAC §535.155(a), every advertisement must include, in a readily noticeable location, the name of the license holder or team placing it, and the broker's name in at least half the size of the largest contact information for any sales agent, associated broker, or team name in the ad. The rule also prohibits misleading advertising and requires proper disclosure of rebate terms. It applies across all media — signs, cards, email, social media, and websites.

How big must the broker's name be in an ad?

At least half the size of the largest contact information for any sales agent, associated broker, or team name appearing in the advertisement. "Contact information" includes a name, phone number, email address, website, and social media handle. So if a sales agent's phone number is the largest contact element, the broker's name must be at least half that size. The point is to keep the sponsoring broker clearly visible to the public.

What counts as an advertisement under the rule?

Almost any communication designed to attract the public to use brokerage services: publications, brochures, radio and television, all electronic media including email, text, and social media, the internet, stationery, business cards, displays, signs, and billboards. Two things are excluded: a communication to the license holder's current client, and a directional sign that contains only the broker's name or logo.

Why can't a sales agent use a title like "owner" in an ad?

Because §535.155 prohibits advertising that implies a sales agent is responsible for operating the brokerage. Titles like "owner," "president," or "CEO," or email and web addresses suggesting the agent runs the brokerage, can mislead the public about who the responsible broker is. Team names are similarly restricted from using words like "brokerage," "company," or "associates" that imply an independent brokerage.

Who is responsible if a sales agent's ad violates the rule?

The broker, in addition to the agent. A broker is required to ensure that a sponsored sales agent's advertising complies with §535.154 and §535.155, so an agent's advertising violation is also the broker's responsibility. This is part of the broker's broader supervisory duty over sponsored agents. Advertising violations are enforced under TRELA §1101.652(b)(23).

Do I have to include a phone number or email that belongs to the broker?

No. There is no requirement that a phone number or email address in an advertisement belong to the broker — an agent may use their own contact information. What the rule requires is that the broker's name appear and be at least half the size of the largest contact information in the ad. The identification requirement is about the broker's name being visible, not about whose contact details are used.

Bottom Line

TREC advertising rule 22 TAC §535.155 requires every Texas real estate advertisement to show the name of the license holder or team placing it and the broker's name in at least half the size of the largest contact information for any sales agent, associated broker, or team name — the most-tested point in the rule. "Advertisement" is defined broadly to cover essentially all media, with only two carve-outs: communications to a current client and directional signs bearing only the broker's name or logo. The rule bans misleading ads, including those implying a sales agent runs the brokerage (through titles or team names using words like "brokerage" or "company"), and requires rebate offers to disclose consent and restriction conditions. It works alongside §535.154 on assumed and team names, brokers are responsible for their sponsored agents' compliance, and violations are enforced under TRELA §1101.652(b)(23), with TREC empowered to impose discipline or administrative penalties. For related Texas topics, see our guides to TRELA licensing and TREC enforcement, the TREC canons of professional ethics, and TREC broker supervision rules.

Source: 22 TAC §535.155 (Texas Administrative Code, official) · TREC — advertising name types under Rule 535.154/.155 · TREC — advertising FAQ