California Real Estate Broker ExaminationPractice of Real Estate and Mandated DisclosuresHard
A real estate licensee is advertising a property for sale. The advertisement includes a photograph of the property that has been digitally altered to remove a prominent power line crossing the backyard. This action is most likely a violation of which of the Commissioner's Regulations?
- ARegulation 2831 (Record Keeping)
- BRegulation 2770 (Advertising Standards)
- CRegulation 2810 (Trust Fund Handling)
- DRegulation 2785 (Misrepresentation)
Show answer & explanationAnswer & explanation
Correct answer: D. Regulation 2785 (Misrepresentation)
Digitally altering a photograph to remove a prominent feature like a power line, which could negatively impact a buyer's decision, constitutes misrepresentation. Regulation 2785 specifically prohibits a licensee from making any substantial misrepresentation or false promise likely to induce action.
Why the other options are wrong
- A. Record keeping (Regulation 2831) is unrelated to the content of an advertisement.
- B. While advertising standards are relevant, misrepresentation is a more direct and severe classification for this specific deceptive act.
- C. Trust fund handling (Regulation 2810) is unrelated to advertising content.
CA DRE Regulation 2785 (Misrepresentation)
California DRE regulation prohibiting licensees from making any substantial misrepresentation or false promises in real estate activities.
- Covers all forms of misrepresentation, including deceptive advertising.
- Aims to protect the public from misleading information.
- Can lead to disciplinary action, including license suspension or revocation.
Memory trick: Ad Truth: No Photo Flaws, Follow DRE's Strict Laws!