Humber/Ontario Real Estate Course 4 Exam Practice

What is true about advertising promises and comparative claims in real estate?

1. A broker can advertise 'Commission as Low as 1%' with proper disclosures.

2. All terms for an advertised promise must be included in the ad.

3. A salesperson cannot make comparative claims about sales volume.

4. A disclaimer includes the time period but not source details.

5. An ad must be approved by a regulatory board before publication.

6. Only the highest commission rate can be advertised.

The correct answer is: A broker can advertise 'Commission as Low as 1%' with proper disclosures.

In real estate advertising, it is important for any promises or claims made to be truthful and not misleading to the public. In this context, it is crucial to highlight that a broker can advertise 'Commission as Low as 1%' with proper disclosures, making option A the correct choice. This means that as long as the advertisement includes all necessary disclosures and does not mislead consumers, promoting a low commission rate in the ad is allowed. On the other hand, the other options are incorrect for the following reasons: - Option B is incorrect because while it is essential to include all material terms in an advertisement, not all terms need to be listed. - Option C is incorrect because a salesperson can make comparative claims about sales volume as long as they are accurate and verifiable. - Option D is incorrect because a disclaimer should include both the time period and the source details to provide transparency to the audience. - Option E is incorrect because not all real estate ads need to be approved by a regulatory board before publication; however, they do need to comply with regulatory requirements. - Option F is incorrect because real estate ads can advertise various commission rates, not just the highest one.