Humber/Ontario Real Estate Course 1 Exam Practice

Which scenario illustrates an ethical violation in real estate advertising?

1. A broker opens an advertisement with a catchy slogan.

2. A salesperson's ad omits the brokerage name and address.

3. An agent advertises personal services without a photo.

4. An advertisement uses slightly exaggerated property features.

5. A realtor uses non-standard professional terms in a promo.

6. A brokerage ad features only high-value properties.

The correct answer is: A salesperson's ad omits the brokerage name and address.

Omitting the brokerage name and address in an advertisement creates an ethical violation because real estate laws and regulations require transparency in advertising. This ensures that consumers can identify the broker responsible for the services and protect themselves from potential fraud or misinformation. Including the brokerage's name and address is necessary for maintaining accountability and a standard of professionalism within the industry. The other scenarios, while they may raise questions about best practices or could be seen as less ideal, do not directly violate the clear ethical standards set forth for real estate advertising. For instance, catchy slogans can be a legitimate marketing strategy, and not including a photo is not a requirement, though it might impact interest. Slightly exaggerated property features could fall into the realm of marketing play, and using non-standard terms may simply reflect personal style rather than a violation of ethical standards. Lastly, focusing only on high-value properties in an ad can be a business decision that does not contravene advertising ethics.