A Maryland licensed broker wants to advertise her brokerage's services using the phrase 'Guaranteed Sale Program — If we don't sell your home in 90 days, we'll buy it!' in a radio commercial. Under MREC advertising regulations, what is the primary concern with this type of advertisement?
Correct Answer
C) The advertisement may be considered misleading if the conditions and limitations of the guarantee are not clearly disclosed
Maryland MREC advertising regulations prohibit misleading advertising. A 'guaranteed sale' claim is a significant representation that could mislead consumers if the material conditions, limitations, qualifications, and exceptions are not clearly and conspicuously disclosed. MREC may find such advertising deceptive if consumers cannot reasonably understand what the guarantee actually entails. The broker must ensure all material terms are disclosed to avoid a finding of misleading advertising under COMAR 09.11.04.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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