2.3 Broker Advertising Rules & Team Names

The Scope of Real Estate Advertising (22 TAC §535.154)

Advertising compliance is one of the most heavily tested subjects on the Texas Real Estate Broker Examination. The Texas Real Estate Commission enforces strict advertising rules codified in 22 TAC §535.154 (Advertisements) and 22 TAC §535.155 (Advertisements on the Internet). The overarching objective of these rules is consumer protection—ensuring the public is never deceived or misled regarding who is representing them and who is the legally responsible sponsoring broker.

Broad Statutory Definition of "Advertisement"

Under 22 TAC §535.154(a), an advertisement includes any form of public communication intended to attract the public to use real estate brokerage services. This includes, but is not limited to:

• Yard signs, directional signs, and commercial billboards;
• Business cards, brochures, postcards, and flyers;
• Newspaper, magazine, and print publications;
• Radio, television, and podcast broadcasts;
• Websites, landing pages, domain names, and blogs;
• Social media profiles, posts, reels, stories, video tours, and paid digital ads;
• Electronic signatures on emails and text message marketing campaigns;
• Vehicle wraps and magnetic automobile signs.

┌────────────────────────────────────────────────────────────────────────┐
│                     WHAT CONSTITUTES AN ADVERTISEMENT?                 │
├────────────────────────────────────────────────────────────────────────┤
│ • Yard Signs & Billboards        • Social Media Posts, Reels & Profiles│
│ • Business Cards & Flyers        • Emails, Newsletters & Signatures    │
│ • Websites, Domains & Blogs      • Radio, TV, Podcasts & Video Tours   │
│ • Vehicle Wraps & Banners        • Paid Google / Meta / Digital Ads    │
├────────────────────────────────────────────────────────────────────────┤
│  EXCLUSIONS: Communications between a licensee and their current client │
│  regarding an existing representation agreement are NOT advertisements.│
└────────────────────────────────────────────────────────────────────────┘

Mandatory Disclosures and the Font Size Rule

Every advertisement published by a Texas license holder must comply with two fundamental disclosure mandates: clear identification of the sponsoring broker and the 1/2 font size ratio rule.

1. Mandatory Broker Identification

Every advertisement must clearly and conspicuously contain the name of the broker, which may be:

• The broker's individual legal name as licensed by TREC;
• The licensed business entity name (e.g., "Lone Star Realty, LLC"); or
• A registered Assumed Business Name (DBA) that has been formally registered with TREC by the sponsoring broker.

An advertisement cannot use only a sales agent's name, a team name, or an unregistered DBA. The consumer must be able to identify the licensed broker responsible for the transaction immediately without conducting external research.

2. The 1/2 Font Size Requirement (22 TAC §535.154(b)(1))

To prevent deceptive advertising where an agent's name or team name dominates the advertisement while the broker's name is hidden in microscopic print, TREC enforces a mathematical font size standard:

• The broker's name or registered DBA must be at least 1/2 the size of the largest contact information appearing on the advertisement.
• "Contact information" is defined as an agent's name, team name, telephone number, email address, website URL, or physical address.

┌────────────────────────────────────────────────────────────────────────┐
│                      THE 1/2 FONT SIZE RULE IN ACTION                  │
├────────────────────────────────────────────────────────────────────────┤
│  Example: A yard sign features the agent's name in 48-point font:      │
│                                                                        │
│         JANE DOE, REALTOR®  ───► 48-point font (Largest Contact Info) │
│                                                                        │
│  The sponsoring broker's name MUST be AT LEAST:                        │
│                                                                        │
│         ACME REALTY BROKERAGE ─► 24-point font (≥ 1/2 of 48 pt)        │
│                                                                        │
│  If the broker's name is in 18-point font, the ad is ILLEGAL.          │
└────────────────────────────────────────────────────────────────────────┘

Exam Trap: The 1/2 font size rule applies to the largest contact information, not the average text size. If a phone number is printed in 60-point text, the broker's name must be at least 30-point text, regardless of the size of the agent's name.

Team Names and Assumed Business Names (DBAs)

Real estate teams have grown dramatically across Texas, prompting TREC to implement strict regulations under 22 TAC §535.154(c) and §535.154(d) to ensure team marketing does not deceive consumers into believing the team is an independent real estate brokerage.

Registration Mandates

Before any DBA or team name can be used in an advertisement, it must be registered with TREC:

1. Assumed Business Name (DBA): An assumed name used by an individual broker or business entity broker must be filed with the Texas Secretary of State / County Clerk and registered with TREC using TREC Form Notice of Assumed Business Name.
2. Team Name: A team name used by a group of sponsored agents must be registered with TREC by the sponsoring broker before the team uses the name in any public marketing.

Permitted vs. Prohibited Team Name Terminology

TREC rules mandate strict naming conventions for real estate teams:

• Mandatory Suffix: A team name must end with the word "Team" or "Group" (e.g., The Austin Luxury Group, The Hill Country Property Team).
• Prohibited Terms: A team name cannot contain terms that imply the team is an independent brokerage. Prohibited words include:
  • "Realty"
  • "Real Estate"
  • "Brokerage"
  • "Company"
  • "Associates" (unless used prior to May 15, 2018, and grandfathered under specific TREC guidelines)
  • Any other term that could mislead the public into believing the team is an independent licensed entity.

┌────────────────────────────────────────────────────────────────────────┐
│                     TEAM NAME COMPLIANCE AUDIT                         │
├───────────────────────────────────┬────────────────────────────────────┤
│      COMPLIANT TEAM NAMES         │     NON-COMPLIANT TEAM NAMES       │
├───────────────────────────────────┼────────────────────────────────────┤
│ • The Smith Premier Team          │ • Smith & Associates Real Estate   │
│ • Capital City Realty Group*      │ • Smith Realty Group (Uses Realty) │
│   (*Only if Group is at the end   │ • The Smith Real Estate Company    │
│    and no "Realty" is used)       │ • Smith Brokerage Team             │
│ • The Lone Star Group             │ • Smith Real Estate Services       │
│ • Bluebonnet Property Team        │ • Smith & Partners                 │
└───────────────────────────────────┴────────────────────────────────────┘

Digital, Social Media, and Consumer Notice Compliance

Digital advertising on platforms like Facebook, Instagram, TikTok, LinkedIn, YouTube, and X (formerly Twitter) is subject to specific TREC regulations under 22 TAC §535.155.

The One-Click Rule for Social Media Posts

On social media platforms where character counts or image dimensions restrict space:

• An individual post, tweet, story, or video reel does not necessarily need to contain full licensing disclosures on the image itself, provided that the post links directly (with one single click) to a landing page, business profile, or account header that displays the mandatory broker identification in full compliance.
• The account profile/bio header must clearly state the sponsoring broker's name or registered DBA.

Mandatory Links: IABS and Consumer Protection Notice

Every license holder who maintains a business website, social media business profile, or digital landing page must provide clear, noticeable links to two mandatory TREC forms:

1. Information About Brokerage Services (IABS) Form — 22 TAC § 531.20(b):

   • The link must be in a readily noticeable place on the homepage of the business website;
   • Labeled "Texas Real Estate Commission Information About Brokerage Services" in at least 10-point font; or
   • Labeled with the shorter "TREC Information About Brokerage Services" in at least 12-point font.

2. Consumer Protection Notice (CPN / Form CN 1-5) — 22 TAC § 531.18:

   • Must be displayed in a readily noticeable location in each place of business the broker maintains, and linked from the homepage of each business website;
   • Labeled "Texas Real Estate Commission Consumer Protection Notice" in at least 10-point font; or
   • Labeled with the shorter "TREC Consumer Protection Notice" in at least 12-point font.

Memorize the font pairing, not a single number. The size requirement tracks the label, not capitalization: the long agency-name label may be as small as 10-point, while the abbreviated "TREC" label must be at least 12-point. On social media the link may sit on the account profile or on a separate page reachable through a direct link.

┌────────────────────────────────────────────────────────────────────────┐
│                     MANDATORY DIGITAL LINK LABELS                      │
├────────────────────────────────────────────────────────────────────────┤
│  FORM 1: IABS (TREC Form IABS 1-0)                                     │
│  Exact Required Link Label:                                            │
│  "Texas Real Estate Commission Information About Brokerage Services"   │
│  (Or: "TREC Information About Brokerage Services")                     │
│                                                                        │
│  FORM 2: Consumer Protection Notice (TREC Form CN 1-5)                 │
│  Exact Required Link Label:                                            │
│  "Texas Real Estate Commission Consumer Protection Notice"             │
│  (Or: "TREC Consumer Protection Notice")                               │
├────────────────────────────────────────────────────────────────────────┤
│  FONT STANDARD: Minimum 10-point font (or 12-point if capitalized).    │
│  PLACEMENT: Visible on homepage / primary business profile page.       │
└────────────────────────────────────────────────────────────────────────┘