Michigan License Law Practice Test

Which statement is true regarding Peter's advertisement that only includes a street address?

1. The ad is acceptable as it indicates the location.

2. The ad is legal if the street address is a well-known landmark.

3. The ad is illegal if it does not include the business name of the brokerage.

4. The ad must have both a street address and a photo of the property.

The correct answer is: The ad is illegal if it does not include the business name of the brokerage.

Including only a street address in an advertisement typically lacks enough identifying information about the brokerage firm responsible for the listing. Michigan license law requires that advertisements for real estate services clearly identify the name of the brokerage to ensure consumers can discern who they are dealing with. This transparency protects consumers and promotes ethical advertising practices within the industry. If an advertisement fails to include the brokerage's name, it can lead to confusion regarding the legitimacy of the offer or the identity of the agent involved. Therefore, the absence of the brokerage's name renders the advertisement illegal under Michigan's licensing guidelines. This emphasizes the importance of proper and complete disclosure in real estate advertising.