Humber/Ontario Real Estate Course 4 Exam Practice

What should a brokerage include in an advertisement of commissions "as low as 2%"?

1. A detailed fee schedule

2. A disclaimer about specific applicable conditions

3. A promotional offer end date

4. An assurance of services included

5. Exact transactions the rate applies to

6. Rates endorsed by professional bodies

The correct answer is: A disclaimer about specific applicable conditions

Including a disclaimer about specific applicable conditions is essential when advertising commissions "as low as 2%." This kind of wording can be misleading if potential clients do not understand the context or conditions under which the lower rate applies. The disclaimer should clarify that the "as low as" rate may only be available for certain types of transactions, under specific circumstances, or may require certain conditions to be met. This helps protect the brokerage from claims of false advertising and ensures that clients are fully informed about the terms that affect their potential commission costs. While offering a detailed fee schedule could provide clients with more information, it doesn't specifically address the potential for confusion regarding the low rate. Similarly, stating a promotional offer end date, outlining services included, listing exact transactions the rate applies to, or providing rates endorsed by professional bodies, might not adequately explain the conditions attached to the "as low as 2%" claim. A disclaimer serves to provide essential transparency and helps potential clients make informed decisions.