DRE Compliance and disclosing the real estate license number on advertising regulation 2773

October 29, 2012


DRE compliance lawyer

Hello again everyone, Attorney Steve Vondran here.  We are talking about California Real Estate Broker Legal Compliance.  One regulation I am seeing violated quite a bit, both online and offline is California Commissioner Regulation 2773.  Let’s get the law on the table here:

California Commissioner’s Regulation 2773

2773. Disclosure of License Identification Number on Solicitation Materials – First Point of Contact with Consumers. (a) A real estate broker or salesperson, when engaging in acts for which a license is required, shall disclose its, his or her eight (8) digit real estate license identification number on all solicitation materials intended to be the first point of contact with consumers. If the name of more than one licensee appears in the solicitation, the license identification number of each licensee shall be disclosed. The license numbers of employing brokers or corporate brokers whose names or logos or trademarks appear on solicitation materials along with the names and license numbers of licensed employees or broker associates do not need to appear on those materials.

Solicitation materials intended to be the first point of contact with consumers, and in which a licensee must disclose a license identification number, include the following:

(1) Business cards; (2) Stationery; (3) Websites owned, controlled, and/or maintained by the soliciting real estate licensee; and

(4) Promotional and advertising fliers, brochures, email and regular mail, leaflets, and any marketing or promotional materials designed to solicit the creation of a professional relationship between the licensee and a consumer, or which is intended to incentivize, induce or entice a consumer to contact the licensee about any service for which a license is required.

The type size of the license identification number shall be no smaller than the smallest size type used in the solicitation material.

(b) For the purposes of Business and Professions Code Section 10140.6, solicitation materials DO NOT include the following:

(1) Advertisements in electronic media (including, without limitation, radio, cinema and television ads, and the opening section of streaming video and audio);

(2) Print advertising in any newspaper or periodical; and

(3) “For Sale” signs placed on or around a property intended to alert the public the property is available for lease, purchase or trade.

Hopefully it goes without saying what your legal requirements are.  What’s most interesting to me is that you do not have to place your license number on streaming media videos you post on youtube or vimeo for example.  Failure to disclose your license number (which can be found here on the DRE license lookup as your probably know) can be grounds to license discipline if you are exposed in an audit or investigation and could lead to the filing of an accusation.  There may also be civil lawsuit ramifications depending upon the facts of the case.

For more DRE compliance information check out our main website.  Attorney Steve is a business and real estate lawyer in California and Arizona and has also previously earned broker licenses in both states.  He can be reached at (877) 276-5084.


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