What is true regarding the use of a fictitious name for a brokerage?

Using a fictitious name for a brokerage is allowed in California as long as it is properly filed with the county clerk. This is a common practice in the real estate industry, enabling brokers to operate under a name other than their legal name. Filing the fictitious name provides legal recognition and protects consumers by ensuring transparency about who is conducting business.

For brokers, adopting a fictitious name can be a strategic way to market their services and establish a brand that resonates with their target market. However, the requirement to file with the county clerk ensures that there is an official record of the business identity, which is important for regulatory compliance and consumer protection.

It's essential for a brokerage to adhere to local laws and regulations regarding fictitious names to avoid legal issues. This includes not only filing with the county clerk but also ensuring that the chosen name does not infringe on existing trademarks or business names.

The other options suggest restrictions or misunderstandings about the usage of fictitious names, which do not align with California's practice.