Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A real estate sales associate is preparing an advertisement for a property. The advertisement mentions a specific interest rate available for financing, but does not disclose that this rate is only available to applicants with excellent credit and requires a significant down payment. Which advertising violation has occurred?
- ABlind advertising
- BPuffing
- CFraudulent advertising
- DMisleading advertising
Show answer & explanationAnswer & explanation
Correct answer: D. Misleading advertising
Misleading advertising occurs when an advertisement contains information that is true, but deceptive or incomplete, leading a reasonable person to a false conclusion. Not disclosing key conditions for a specific interest rate falls under this category.
Why the other options are wrong
- A. Blind advertising is when an advertisement fails to disclose the name of the brokerage firm.
- B. Puffing is exaggerated or superlative comments about property that are not factual misrepresentations, such as 'best view in town'.
- C. Fraudulent advertising involves intentional misrepresentation or omission of material facts to deceive, which is a more severe form than what is described.
Misleading Advertising
Advertising that, while possibly containing some truth, is deceptive or incomplete in a way that could lead a reasonable person to a false understanding or conclusion.
- Information is true but incomplete or presented deceptively.
- Can lead potential buyers to incorrect assumptions.
- Violates Florida real estate advertising regulations.
Memory trick: Truth half-told, a tangled web unfolds.