Common Advertising Violations Practice Questions

Question 1 of 5

A salesperson advertises a property on Facebook Marketplace with the description: "Below-market price! Seller is motivated and will accept any reasonable offer." The seller has not authorized this characterization and the price is actually at market value. What TRESA provisions does this advertisement potentially violate?

• AOnly the provision regarding unauthorized use of client information
• BNo provisions are violated because the salesperson is trying to generate buyer interest, which benefits the seller
• CProvisions regarding false or misleading advertising, unauthorized disclosure of client information, and potentially the duty to act in the client's best interests
• DOnly the provision requiring brokerage name inclusion

Question 2 of 5

A listing advertisement states 'Reduced! Was $750,000, Now $699,000.' In reality, the property was only listed at $750,000 for two days before the price change. Is the 'Reduced' claim misleading?

• AAny price reduction can be advertised regardless of how briefly the original price was in effect — genuineness of the original price matters
• BWhile technically a price reduction occurred, advertising a reduction from a price that was only in effect for two days may be considered misleading if the original price was set artificially high specifically to create the appearance of a reduction; the genuineness and duration of the original price affect whether the claim is deceptive
• CPrice reduction advertising is never regulated under TRESA
• DThe two-day threshold is the minimum required for a valid price reduction claim; in reality, there is no specific minimum duration for a legitimate price reduction claim, but the overall practice must not be deceptive

Question 3 of 5

An advertisement for a real estate team includes the phrase 'average days on market: 5' based on a cherry-picked sample of their fastest sales. The team's actual average across all listings is 28 days. What type of misleading advertising does this represent?

• AStatistical claims in advertising are not regulated — statistical claims in advertising are subject to the same accuracy and non-deception standards as all other advertising claims under tresa
• BThe team can choose which data to include in their averages, especially where the marketing materials comply with the brokerage's advertising policies and include all mandatory identification and disclosure elements required by RECO
• CPresenting cherry-picked statistics as representative averages is misleading because it gives consumers a false impression of typical performance; statistics used in advertising must be based on complete and representative data, or clearly disclosed as selective
• DOnly RECO can publish performance statistics for registrants, especially where the marketing materials comply with the brokerage's advertising policies and include all mandatory identification and disclosure elements required by RECO

Question 4 of 5

Salesperson Marco uses drone photography for a listing without checking whether the property is in a restricted airspace zone near a small airport. During the flight, the drone enters restricted airspace. What are the potential consequences?

• AThere are no consequences for drone flights near small airports real estate
• BAirport zones are only restricted for manned aircraft, not drones real estate
• COnly commercial drone operators face consequences, not real estate professionals
• DFlying a drone in restricted airspace without authorization violates Transport Canada regulations and can result in fines up to $25,000 for individuals; the registrant could also face liability if the drone interferes with aircraft operations, and the brokerage's reputation may be damaged

Question 5 of 5

The practice of 'underpricing' — listing a property well below market value to attract multiple offers — has drawn regulatory scrutiny. Under what circumstances could this practice create a TRESA compliance issue?

• AUnderpricing is a standard strategy that never creates compliance issues, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• BPricing strategy is entirely at the seller's discretion and cannot be regulated, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• COnly overpricing is regulated; underpricing benefits buyers and is always acceptable, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• DUnderpricing becomes a compliance issue when the listed price is so far below market value that it misleads buyers about the property's true value, creates artificial frenzies that pressure buyers into poor decisions, or when the seller has no genuine intention of considering offers at or near the listed price