Humber/Ontario Real Estate Course 1 Exam Practice

If a real estate agent misleads buyers about the actual price and features of new homes in an advertisement, which of the following is NOT an option available to the Registrar under Sec. 37 of the Code of Ethics?

1. Order a retraction of the ad and/or have the salesperson publish a correction

2. Order the immediate cessation of all advertising by the employing brokerage

3. Order the immediate cessation of this advertising

4. Require pre-approval of that salesperson's advertising for up to one year, under certain circumstances

The correct answer is: Order the immediate cessation of all advertising by the employing brokerage

In this scenario, the focus is on the options available to the Registrar when addressing misleading advertising by a real estate agent under Section 37 of the Code of Ethics. Ordering the immediate cessation of all advertising by the employing brokerage is a significant step that goes beyond addressing the specific misleading advertisement. This option implies a blanket action against the entire brokerage, which may not be warranted based solely on the actions of one salesperson. The more appropriate actions involve correcting the misleading information or imposing specific conditions on the individual responsible for the advertisement, rather than punishing the entire brokerage. On the other hand, the other options emphasize retraction of the misleading ad, correction, or targeted restrictions on the salesperson's future advertising efforts. These measures are more tailored and conducive to resolving the situation without unduly affecting other agents within the brokerage who may not have engaged in misleading practices. Such actions are seen as reasonable and corrective rather than punitive on a large scale.