Effective advertising is a crucial tool for attracting customers and building a brand. However, it is essential that advertising is clear, transparent and does not mislead potential customers. When a real estate broker decides to advertise escrow services, there are specific regulations that must be followed to ensure integrity and transparency in the industry.

Advertising Requirements for Escrow Services

When a real estate broker advertises escrow services, it is mandatory that the advertisement specify the following:

• The Services Are Offered Only in Connection with the Brokerage Business: It is essential that clients understand that the broker offers escrow services only in conjunction with its primary real estate brokerage business. This helps clarify that the broker is not an independent escrow agent subject to laws specific to such licensees.

Additional considerations

• The Term “Escrow” in a Fictitious Name: If a broker uses a fictitious business name that includes the word “escrow,” its advertisements must follow the same rule and clarify the non-independent nature of its escrow services.
• It is not necessary to indicate separation from a private deposit: Contrary to some assumptions, there is no requirement for brokers to indicate that they are not affiliated with a particular depository in their escrow advertisements.

Conclusion

Clarity and transparency in advertising are essential to maintaining customer trust in the real estate industry. By following the appropriate regulations and guidelines, brokers can ensure that they provide escrow services in an ethical and professional framework, avoiding misunderstandings and potential legal complications.