National Real Estate Exam (PSI)Practice of Real EstateHard
A brokerage runs a newspaper ad listing an attractive property for sale but does not include the brokerage's name or license information, only a phone number to call. This type of advertisement is known as a violation called:
- APuffing
- BBait and switch
- CNet listing
- DBlind ad
Show answer & explanationAnswer & explanation
Correct answer: D. Blind ad
A blind ad fails to identify the brokerage or disclose that the advertiser is a licensed real estate agent, violating advertising regulations that require agency disclosure in all real estate advertisements.
Why the other options are wrong
- A. Puffing is exaggerated non-factual sales language, not a disclosure issue.
- B. Bait and switch involves advertising one property to lure buyers into a different, often less favorable one.
- C. A net listing is a compensation arrangement, not an advertising format.
Blind Advertisement
A real estate ad that fails to disclose the identity of the licensed broker or brokerage, violating disclosure regulations.
- Violates license law advertising rules
- All ads must identify the brokerage
- Purpose is to protect consumers from unlicensed-seeming solicitations
Memory trick: Blind ad = ad 'hides' who the broker really is