Advertising: Size of Sponsoring Broker’s Business Name

Anneliese Fierstos
Illinois REALTORS® Legal Hotline Attorney

The most frequent question the Legal Hotline is fielding continues to be about the changes to Section 10-30 (f) of the Act and the addition of the following: “In advertising that includes the sponsoring broker’s name and a team name or individual broker’s name, the sponsoring broker’s business name shall be at least equal in size or larger than the team name or that of the individual.”

The primary member concern has been whether the new law requires the team or individual name to be smaller than any subtext which might be written underneath or contained within, a sponsoring broker’s logo. Revisions to Section 1450.715(a)(7) of the rules under the Real Estate License Act, (which should be available later this year) should help clarify this. The proposed language includes “safe harbor” provisions for licensees to consider in trying to be creative in their advertising.

First, the proposed new sections of the rules will make it clear that, for purposes of interpreting Section 10-30(f): a logo, emblem, label, trademarked image, or similar identification used by the sponsoring broker is not a part of the legal or assumed name of the sponsoring broker. But if the logo contains the sponsoring broker’s legal or assumed name, and in the case of a franchise, including a franchise affiliation, and the image is equal to or larger than the team or individual’s name, this will be compliant with RELA.

Second, the suggested revision to Section 1450.715(a)(7) or contained within will include specific guidelines which, if they are correctly followed, will ensure compliance with the new law. Those are:

1. If the font size used for the letters in the sponsoring broker’s legal or assumed name is the same size or larger than the letters used in the team or individual licensee’s name; or

2. If the area in terms of height and width containing the sponsoring broker’s legal or assumed name is at least the same size or larger than the area, in terms of height and width than that of the team or individual licensee’s name.

What is required on business cards and billboard advertisements?

The Legal Hotline has been getting a lot of questions regarding whether a phone number is required on a business card or other advertising. The answer is that it is not unless it is required by the office policy established by your sponsoring broker.

In a licensee’s advertising, a licensee should include the name of the real estate licensee, as that individual is registered with the Illinois Department of Finance and Professional Regulation (IDFPR), or a shortened version of their name if that version has been registered with IDFPR. Any designated managing broker on record with IDFPR must include that designation on a business card or other advertisement that is not a “For Sale” or similar yard sign. In addition, the complete brokerage name must be disclosed in a reasonable and readily apparent manner and should also be as large or larger than the team or individual’s name, if a name is included on the real estate advertisement.