California Real Estate Salesperson Exam Practice – Quesiton 45

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Question

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When a broker advertises a listed property for sale, the broker may not legally use an ad: 

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Selections

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A. Which does not give the price of the property

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B. Without stating the kind of financing that is available

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C. Which fails to state the street address of the property

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D. That gives the impression that the broker is the owner of the property

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Answer: D

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5 Keys Summary

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• A broker may not legally use an ad that gives the impression that the broker is the owner of the property.

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• This practice is known as a blind ad and is illegal because the broker fails to clearly identify themselves as a licensed agent or broker.

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• Licensed real estate agents must clearly identify themselves (including the broker’s name and license number) in all advertisements for listed homes to prevent consumers from mistakenly believing they are contacting the owners directly.

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• Misrepresentation through giving the impression of ownership can lead to license suspension or revocation and fines for the licensee.

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• An ad is generally permissible even if it does not contain the price of the property or the street address.

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