Before you read
Test yourself first: 5 questions
Question 1 of 5
Under DRE record-keeping rules, advertising and solicitation materials used by a broker should be:
Answer: B. Records connected with the broker's licensed activity, including advertising and solicitation materials, are subject to inspection by the DRE and must be retained consistent with the three-year retention requirement so the Commissioner can verify compliance with advertising and disclosure rules.
Question 2 of 5
All first-point-of-contact solicitation materials and advertising by a licensee in California must include which of the following?
Answer: B. California law requires licensees to disclose their DRE license identification number on all first-point-of-contact solicitation materials (business cards, advertising flyers, etc.). This lets consumers verify licensure. Personal data like SSN is never required in advertising.
Question 3 of 5
A salesperson runs an online ad for a listing that gives only a phone number and price but omits any indication that a licensee is involved. This is an example of:
Answer: B. A 'blind ad' is one placed by a licensee that fails to disclose that the advertiser is a real estate licensee or agent. California prohibits blind advertising; ads must reveal the licensee/broker so the public is not misled into thinking they are dealing directly with a private party.
Question 4 of 5
When a real estate 'team' advertises using a team name, California law requires that the advertisement also clearly include:
Answer: B. A team operating under a team name must include the responsible broker's name (the brokerage) in its advertising, displayed in a manner at least as prominent as required, and the team name may not imply it is a separate brokerage. The broker remains responsible for the team's advertising and conduct.
Question 5 of 5
A broker advertises a property as available with 'no down payment required' when in fact substantial costs are due at closing. Under DRE rules this advertising is:
Answer: B. California prohibits false or misleading advertising by licensees. Claiming 'no down payment' while significant funds are actually required to close misrepresents the terms and is grounds for disciplinary action.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Misleading or deceptive advertising is a basis for DRE discipline. Brokers must also maintain transaction and trust-fund records for the period required by DRE rules so the agency can audit compliance, particularly for funds that must be deposited within 3 business days.
California Advertising & Record-Keeping Rules: FAQs
Is California Advertising & Record-Keeping Rules on the real estate exam?
Yes. State License Law is a scored domain on the California real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does California test this differently?
California applies its own license law on top of the national portion. This page covers the California rules specifically, which is what the state section of your exam tests.
