New Advertising Rule to Cost Texas Real Estate Professionals Millions

New Advertising Rule to Cost Texas Real Estate Professionals Millions

The Texas Real Estate Commission has proposed a rule change to 535.154. The new rule would require any advertising placed by a salesperson to contain the license number of the sponsoring broker. Brokers will be required to place their license number on any advertising they place.

Click here for the proposed rule change on the Texas Secretary of State website

The current rule requires the broker’s or brokerage’s name to be included in all advertising placed by a salesperson or broker.

While TREC rules require licensees to promptly file assumed business names (DBAs) with the commission, the concern revolves around DBAs not being searchable by consumers and other licensees.  As soon as the new TREC website is up-and-running, my understanding is that DBAs will be searchable.

If this is correct, adding a broker license number to advertising does not really add anything meaningful. I can see consumers calling in and asking about property number XXXXXXX (insert your broker license number) thinking it’s a property ID number of some sort.

The commission estimates that this will have no impact on real estate licensees. I disagree. 

Everything will need to be changed to accomodate this change–business cards, letterhead, websites, yard signs, brokerage signage, etc.  I estimate the cost will average close to $2000 per licensee or $240 million dollars in unnecesary costs to Texas Real Estate licensees. The proposed rule has a quick phase-in date of January 1 , 2012.  It’s basically a year to change everything.

The open comment period runs through October 9th. You can send your comments to:

Texas Real Estate Commission
Attn: Loretta DeHay
P. O. Box 12188
Austin, TX 78711-2188

You can also fax comments to her attention at 512-465-3910.

If we do not take a stand, this will likely be approved at the November TREC meeting and go into effect in 2011.

About Tom Branch

Tom Branch has written 597 posts in this blog.


Have you ever just met someone, but felt you like you'd known him for years? That's what most people experience with Tom. He has a knack for making folks feel right at home. After 21 years in the Air Force, loyalty and honesty are the foundation of everything Tom does. In addition to being a Texas Real Estate Broker, Tom is a Certified Distressed Property Expert (CDPE) and a Short Sales & Foreclosure Resource (SFR).

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