Humber/Ontario Real Estate Course 4 Exam Practice

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When advertising a commission rate like "as low as 2%", what must Brokerage A include?

A disclosure to explain when the lowest rate applies and when it does not
A dollar value alongside the percentage
An explanation that the commission is 2% for all transactions
Additional fees and percentage rates for different services
A provision for a fixed duration for this rate
No additional information, as it is clear

The correct answer is: A dollar value alongside the percentage

When a brokerage advertises a commission rate such as "as low as 2%", it is essential to include a dollar value alongside the percentage. This requirement is crucial because it helps potential clients understand the practical implications of the percentage quoted. By providing a dollar value, clients can easily assess what a 2% commission would amount to based on varying sale prices. This transparency fosters trust and aids clients in making informed decisions. Clear communication about fees related to real estate transactions is essential in maintaining compliance with advertising regulations. Not providing a dollar value can lead to misunderstandings regarding the actual cost of the services being offered, which is why including it alongside the percentage is a necessary practice in real estate advertising.