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Practice Of Real Estate DisclosuresAdvertising_and_ethicsEASY

A California licensee wants to advertise herself as the 'Number 1 Agent in the County.' Under DRE advertising standards, which condition must be met for this claim to be permissible?

Correct Answer

A) The claim must be supported by verifiable data, such as MLS sales records documenting the highest transaction volume in the county for a defined time period

Under Cal. B&P Code §10176(a), licensees are prohibited from making false or misleading representations. A superlative claim such as 'Number 1 Agent' is permissible only when it can be substantiated by verifiable, objective data — for example, MLS records confirming the highest closed sales volume or transaction count in the county during a specified period. Without such substantiation, the claim constitutes misleading advertising regardless of intent.

Answer Options
A
The claim must be supported by verifiable data, such as MLS sales records documenting the highest transaction volume in the county for a defined time period
B
The claim must include a footnote disclosing the metric used, but no independent verification of the underlying data is required
C
The claim is permissible only if it specifies the brokerage, since superlative claims apply to firms rather than individual licensees
D
The claim must be reviewed and approved by the employing broker before publication, after which no further substantiation is needed

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Related Topics & Key Terms

Key Terms:

advertisingnumber_onesubstantiationdataBP_Code_10176

Related Concepts

Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.

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.

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