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Alberta Real Estate Licensing Exam Practice · Question

A managing broker is reviewing advertising materials for a new listing. The advertisement states, 'This home is guaranteed to be the best investment in the neighbourhood!' Which RECA Rule is potentially being violated by this statement?

RECA Rules Section 42(a) prohibits a real estate professional from engaging in advertising that is false, misleading, or deceptive. Guarantees about investment

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Question: A managing broker is reviewing advertising materials for a new listing. The advertisement states, 'This home is guaranteed to be the best investment in the neighbourhood!' Which RECA Rule is potentially being violated by this statement?

Answer options: ✅ Misleading Advertising (Section 42(a))

  • Competence (Section 39)
  • Duty to Cooperate (Section 41)
  • Confidentiality (Section 40(c))

Correct answer: Misleading Advertising (Section 42(a))

Explanation: RECA Rules Section 42(a) prohibits a real estate professional from engaging in advertising that is false, misleading, or deceptive. Guarantees about investment returns are generally considered misleading, as future market conditions are uncertain and professional advice should be objective.

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