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

[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?
A) It does not also include the loan's annual percentage rate and other financing terms.
B) It does not also include the original balance on the loan.
C) It does not provide the brokerage firm's name as licensed.
D) Nothing, so long as it is the real estate licensee's own property.

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
[All NCREC-Broker-N Questions]

[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?

Show Suggested Answer Hide 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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Mariann
2 hours ago
I think the ad is misleading. It needs more details.
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Hyman
5 days ago
B) is crucial info too. Buyers need to know the original balance!
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Earlean
10 days ago
C) is also important. Can't forget to include the brokerage name!
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Karma
16 days ago
Wait, can you really assume a loan like that? Sounds too good to be true!
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Thaddeus
2 months ago
I think D) is misleading. Even if it's their property, they still need to follow the rules.
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Nadine
2 months ago
A) is definitely the issue here. Gotta disclose the APR!
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Dahlia
3 months ago
I’m confused about whether it matters if it’s the licensee's own property. I feel like that could change the rules a bit, but I can't recall the specifics.
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Miriam
3 months 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
3 months 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
3 months 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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