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Practice Of Real EstateLicense_lawMEDIUM

A Michigan brokerage advertises a property with the headline 'Guaranteed to Sell in 30 Days or We Pay You $1,000!' The brokerage does not have a specific written program in place to back up this claim. Under Michigan's Occupational Code, this advertisement most likely:

Correct Answer

B) Violates Michigan advertising rules because it contains a false or misleading representation

Under MCL 339.2512 and the Michigan Occupational Code's prohibition on false and misleading advertising, a guarantee claim that the brokerage cannot substantiate constitutes a false or misleading representation. Michigan's advertising rules prohibit licensees from making unsubstantiated claims or promises in advertising. A '30-day sale guarantee' backed by no actual program is a deceptive advertising practice that violates the Occupational Code.

Answer Options
A
Is permissible as puffery because all real estate advertising contains exaggerated claims
B
Violates Michigan advertising rules because it contains a false or misleading representation
C
Is permissible if the brokerage's broker signs a written disclaimer attached to the ad
D
Violates Michigan law only if a specific buyer relied on the claim and suffered financial harm

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Related Topics & Key Terms

Key Terms:

advertising_rulesfalse_advertisingmisleading_claimspuffery

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