A salesperson, John Doe, is advertising a property in Toronto. His advertisement includes the phrase 'Act now, this home won't last!'. Which of the following statements about this advertisement is true according to RECO's advertising rules?

Question: A salesperson, John Doe, is advertising a property in Toronto. His advertisement includes the phrase 'Act now, this home won't last!'. Which of the following statements about this advertisement is true according to RECO's advertising rules?

Answer options:

• This advertisement is generally acceptable as it creates a sense of urgency, which is common in real estate marketing.
• The advertisement is acceptable provided John Doe can provide evidence that the property has received multiple offers. ✅ Such a statement is a breach of RECO's advertising rules if it cannot be factually substantiated, as it could be considered misleading.
• This type of statement is only prohibited if the property is a new construction condominium.

Correct answer: Such a statement is a breach of RECO's advertising rules if it cannot be factually substantiated, as it could be considered misleading.

Explanation: RECO’s Advertising Rules require that all advertising be clear, accurate, and not misleading. Claims of urgency or high demand must be factually verifiable to avoid conveying a false impression.