March 18, 2025
Advertising can influence how prospects see your services and your firm’s credibility. The DOL and the Northwest Multiple Listing Service (NWMLS) in Washington State are particularly vigilant about policing real estate advertising, pursuant to several laws and regulations (RCW 18.85, RCW 18.86, WAC 308-124 through 308-124I). Noncompliance can lead to fines, civil liability, and even criminal referrals in more extreme cases. It is a good reminder why standards that promote transparency, accuracy and fairness are important.
It is mandatory that advertisements include the firm’s licensed name (or licensed DBA). A broker using a personal brand of any kind (e.g., a tagline or nickname) must still place the firm’s name in a clear, conspicuous manner so that consumers know who’s actually rendering services. The firms cannot shorten their names in advertising except for the common understanding of the abbreviation. If the licensed name of your firm includes references to a franchise, then all the words that are listed under the license cannot be omitted in the advertisements.
Another important element is steering clear of misleading legal entity designations, including terms that would suggest the formation of an independent corporation, limited liability company, or partnership. A broker that advertises under either a personal name or other name needs to have prior written approval from the designated broker. This means the leadership at your firm has oversight over any titles, names, or brands used in public-facing material.
Honesty is still non-negotiable. Whether it’s the number of recent sales, a promise of quick closings or a property’s features, any claim must be accurate. It is extremely unlikely that anyone will come out of the woodwork to complain, but if they do, the risk of administrative and civil penalties is real. One complaint and/or misrepresentation can damage your professional standing. The Fair Housing Act (and Washington’s Fair Housing law, RCW 49.60.222) also protects against discriminatory language or suggestions. Do not make statements that can be construed as exclusionary based on race or color, that are religious, sexual, disability-based, familial status, or national origin.
Add the other most important piece of compliant advertising: Authorization. You cannot indicate property as available, sold, or under contract without written authority. Therefore, unauthorized advertising breaches DOL regulations and can jeopardize your positive image. Recorded approvals eliminate risk and strengthen best practices at your firm.
Keeping up with these regulations is the best way to ensure your advertising across all media—be it print, online, or signage—stays in compliance. Stay apprised of new advisories from the DOL, have regular conversations with your managing broker, and do not hesitate to ask what steps to take to present your business credentials. Following these principles ensures that you maintain professional ethics, protect consumers, minimize legal issues, and build the trust of both clients and colleagues.