Explanations

A real estate broker, when advertising a listed property for sale, is legally prohibited from using an ad that gives the impression they are the owner of the property. This type of advertisement is known as a blind ad.

Here’s why:

Street Address (C): While providing the street address is standard practice, not including it in an initial ad is not inherently illegal, especially if the ad aims to generate inquiries. However, for classified ads for rental properties, the phone number and address for the rental property should be clearly listed.

Blind Ad (D): California law requires real estate licensees to clearly identify themselves as licensed agents in all advertisements for listed homes. This includes stating the broker’s name and license number. The purpose is to prevent consumers from mistakenly believing they are contacting the property owners directly. Failure to do so can lead to license suspension or revocation and fines.

Price (A): While including the price is common practice and usually beneficial, there is no general legal prohibition against an ad that does not give the price of the property.

Financing (B): Stating the kind of financing available is not a universal legal requirement for all property advertisements, although specific loan advertisements have disclosure rules (e.g., Truth-in-Lending Act requires disclosure of APR and total borrower costs for certain loans).

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