Humber/Ontario Real Estate Course 4 Exam Practice

A growing brokerage wants to advertise having the highest number of sales and dollar volume in a specific area. What must they do?

1. Advertise only the number of sales, but not the volume

2. Get pre-approval from the Registrar

3. Obtain approval from the real estate board

4. State the basis for the claims in the advertisement

5. Verify the statistics with clients

6. Wait for annual summary confirmation

The correct answer is: State the basis for the claims in the advertisement

The correct answer emphasizes the importance of transparency and clarity in advertising claims made by brokerages. When a brokerage asserts that it has the highest number of sales and dollar volume in a specific area, it must provide a basis for these claims to ensure they are not misleading to potential clients or the public. This practice aligns with legal and ethical advertising standards, which require that any claim be substantiated with accurate data. By stating the basis for the claims in the advertisement, the brokerage is not only being ethical, but it is also protecting itself from potential legal repercussions that could arise from false advertising. Providing a clear basis helps to build trust with clients, as it informs them that the brokerage is backed by solid evidence rather than mere assertions. Other choices do not adequately address the requirements for ethical advertising in real estate. For example, obtaining approval from the real estate board or getting pre-approval from the Registrar might be necessary for other regulatory reasons but are not specifically related to the substantiation of advertising claims. Verifying statistics with clients, while a good practice for ensuring accuracy, does not fulfill the obligation to disclose the basis of claims in advertising. Waiting for annual summary confirmation may also lead to delays in promoting the brokerage's achievements and could hinder timely advertising.