Max, a Texas broker, has registered his business name. What else must he do to legally run an ad?

Max, a Texas broker, has registered his business name. What else must he do to legally run an ad?

• A. Acquire a license for advertising
• B. Provide evidence of legal authority to use the assumed business name
• C. Obtain a business bank account
• D. Notify clients of the name change

Answer: (B)

For Max to legally run an ad using his registered business name, he must provide evidence of legal authority to use that assumed business name. In Texas, when a broker registers a business name that differs from their legal name, they are required to demonstrate that they have the right to use that name in their advertising. This typically involves filing with the appropriate authorities, such as the Secretary of State or local government, depending on the structure of the business. Having this legal authority ensures that there is no conflict with other businesses and protects consumers from confusion. It helps maintain transparency in the real estate market, allowing clients to identify the true nature of the business they are dealing with. Without this evidence, any advertising done under that name would not comply with legal requirements, which could lead to penalties or legal issues for the broker. Thus, having the proper documentation to substantiate the use of the business name is crucial before proceeding with any advertisements.

For Max to legally run an ad using his registered business name, he must provide evidence of legal authority to use that assumed business name. In Texas, when a broker registers a business name that differs from their legal name, they are required to demonstrate that they have the right to use that name in their advertising. This typically involves filing with the appropriate authorities, such as the Secretary of State or local government, depending on the structure of the business.

Having this legal authority ensures that there is no conflict with other businesses and protects consumers from confusion. It helps maintain transparency in the real estate market, allowing clients to identify the true nature of the business they are dealing with. Without this evidence, any advertising done under that name would not comply with legal requirements, which could lead to penalties or legal issues for the broker. Thus, having the proper documentation to substantiate the use of the business name is crucial before proceeding with any advertisements.