Humber/Ontario Real Estate Course 3 Exam Practice

Which statement is correct concerning the advertising of promises and comparative claims in real estate?

1. A brokerage can advertise 'Commission as Low as 1%' provided that appropriate disclosures are made as to how the arrangement works

2. All terms relating to an advertised promise (e.g., I will buy your house if not sold in 60 days) must be included in the advertisement

3. A salesperson is not permitted to make comparative claims (e.g., #1 Salesperson Based on Sales Volume)

4. A disclaimer for an advertised claim typically includes the time period but not the source details supporting that claim

5. Comparative claims must only include the current year's statistics

6. No specific guidelines are required for advertising comparative claims

The correct answer is: A brokerage can advertise 'Commission as Low as 1%' provided that appropriate disclosures are made as to how the arrangement works

The correct statement is that a brokerage can advertise "Commission as Low as 1%" as long as appropriate disclosures are made about how that arrangement works. This aligns with the regulations governing advertising practices in real estate, which allow brokerages to promote their commission structures while ensuring transparency. Proper disclosures would typically detail the terms under which the low commission applies, ensuring that consumers have a clear understanding of the conditions linked to the promotion. In the broader context, the other choices highlight important aspects of real estate advertising regulations. For instance, any promise made in advertising, such as a guarantee regarding property sales, usually requires comprehensive detail to avoid misleading consumers. This ensures that all potential buyers understand the full offer and its conditions. Comparative claims, such as proclaiming oneself the "#1 Salesperson Based on Sales Volume," need to be substantiated and may require specific guidelines to ensure they are not misleading. These claims often necessitate support from relevant data sources to validate the assertion being made. Additionally, regarding timeframes and source details, disclaimers typically must provide a complete picture. Simply stating the timeframe without sourcing information undermines the reliability of the claim. Therefore, the option that a brokerage may use the low commission advertisement with the necessary disclosures is indeed the correct approach,