Humber/Ontario Real Estate Course 3 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What should be included in an advertisement stating "commissions as low as 2%"?

A disclosure indicating when the lowest rate applies and when it does not
A full list of commission rates for different scenarios
A simple message stating the 2% rate applies to all transactions
An explanation that commissions are negotiable
Both the 2% commission rate and a minimum dollar amount
A detailed breakdown of services included for the 2% commission

The correct answer is: A disclosure indicating when the lowest rate applies and when it does not

Including a disclosure that specifies when the lowest rate applies and when it does not is critical for maintaining transparency and adhering to regulatory guidelines in real estate advertising. This approach ensures that potential clients are fully informed about the commission structure and any conditions that may affect the rate they receive. By clearly stating the scenarios in which the 2% commission applies, clients can better understand what to expect and make informed decisions regarding their real estate transactions. The intent of this advertising practice is to prevent any misinterpretation or confusion among consumers about the fees that will ultimately be charged, which is a requirement under consumer protection laws in real estate. This level of detail is vital for fostering trust and credibility in the relationship between agents and clients.