Real Estate Licensing NCREC-Broker-N Exam - Topic 3 Question 12 Discussion

Actual exam question for Real Estate Licensing's NCREC-Broker-N exam

Question #: 12
Topic #: 3

[Marketing and Advertising Authorization]

A real estate licensee's advertisement for a house includes only the following phrase about financing: "Assume the owner's original loan with only a $1,000 down payment!" What is wrong with this advertisement?

AIt does not also include the loan's annual percentage rate and other financing terms.

BIt does not also include the original balance on the loan.

CIt does not provide the brokerage firm's name as licensed.

DNothing, so long as it is the real estate licensee's own property.

Show Suggested Answer

Suggested Answer: A

According to the Truth in Lending Act (TILA) and advertising guidelines in North Carolina, if a licensee advertises specific financing terms---such as the amount of down payment---this triggers the requirement to disclose additional terms, including the annual percentage rate (APR), amount of payments, and term of the loan. The failure to include these terms makes the advertisement misleading and non-compliant.

by Nydia at Apr 03, 2026, 12:48 AM

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Miriam

4 days ago

I practiced a question similar to this, and I think it was about disclosing loan terms. So, maybe option A is correct?

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Beatriz

9 days ago

I'm not entirely sure, but I remember something about needing to include the brokerage firm's name. It feels like that could be a rule.

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Dianne

14 days ago

I think the ad might be missing some important financing details, like the annual percentage rate. That seems to be a common requirement in real estate ads.

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