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Practice Of Real Estate DisclosuresAdvertising_and_ethicsMEDIUM

Under California DRE advertising regulations, licensees must comply with truth-in-advertising standards. All of the following would constitute advertising violations EXCEPT:

Correct Answer

D) Advertising that the agent specializes in luxury properties when the agent has closed multiple transactions in that price range

Under Cal. B&P Code §10140.6, advertising must be truthful and not misleading. Claiming a luxury specialization is permissible self-promotion when the agent has genuine, documented experience in that market segment. Accurate representations of expertise do not constitute a violation.

Answer Options
A
Describing a property as 'move-in ready' in the listing when the agent is aware of a pending code enforcement notice requiring significant repairs
B
Advertising a property as having 4 bedrooms when county records reflect only 3 legally permitted bedrooms
C
Promoting a recently closed sale price as the agent's result when the agent represented the buyer, not the seller
D
Advertising that the agent specializes in luxury properties when the agent has closed multiple transactions in that price range

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Related Topics & Key Terms

Key Terms:

advertisingspecializationluxurytruth_in_advertisingBP_Code_10176

Related Concepts

Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.

Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.

HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.

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