Texas Real Estate Sales Agent ExamReal Estate PracticeHard
A newly licensed real estate agent is excited to promote their services. They decide to create a social media advertisement that states, 'I guarantee to sell your home in 30 days or I'll buy it myself!' What ethical and legal issue does this advertisement most likely present under TREC rules?
- AFailure to include the broker's name.
- BViolation of the Fair Housing Act.
- CMisleading advertising due to an unrealistic guarantee.
- DFailure to disclose agency representation.
Show answer & explanationAnswer & explanation
Correct answer: C. Misleading advertising due to an unrealistic guarantee.
TREC rules prohibit licensees from making false promises or misrepresentations in advertising. A guarantee to sell a home in a specific timeframe or buy it themselves, especially without clear and substantial conditions, is generally considered misleading and unrealistic, violating advertising ethics.
Why the other options are wrong
- A. While important, the primary issue here is the misleading guarantee, not just missing the broker's name.
- B. The advertisement, as stated, does not contain discriminatory language related to protected classes.
- D. While agency disclosure is crucial, this statement focuses on the nature of the advertising claim itself, which is misleading.
Misleading Real Estate Advertising
Real estate advertising in Texas must be truthful and not contain any false promises, misrepresentations, or statements that are likely to mislead or deceive the public, including unrealistic guarantees.
- Prohibits false or misleading statements.
- Guarantees must be carefully worded and substantiated.
- All advertising is the responsibility of the broker.
Memory trick: Advertise with honesty, clarity, and no fantasy!