Rocky Mountain Realty runs a television commercial that states: 'We guarantee you'll sell your home in 30 days or we'll buy it ourselves!' The employing broker has not established any written policy or financial mechanism to actually purchase homes. Under CREC rules, this advertisement is best characterized as:
Correct Answer
B) A potential violation of CREC advertising rules because it contains a misleading guarantee the brokerage cannot fulfill
CREC rules prohibit advertising that is false, misleading, or deceptive. A guarantee that the brokerage will purchase the home if it does not sell in 30 days, when no financial mechanism or written policy exists to back up that promise, constitutes misleading advertising. CREC does not require actual consumer harm to occur before finding a violation — the misleading nature of the advertisement itself is the violation. Guarantees in real estate advertising must be supportable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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