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

[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.

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.

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12 comments · newest first

Levi 3 months ago

I agree, but I also think the brokerage firm's name is important too.

Hubert 3 months ago

Definitely! It should include the loan's annual percentage rate.

Mariann 3 months ago

I think the ad is misleading. It needs more details.

Hyman 3 months ago

B) is crucial info too. Buyers need to know the original balance!

Earlean 3 months ago

C) is also important. Can't forget to include the brokerage name!

Karma 4 months ago

Wait, can you really assume a loan like that? Sounds too good to be true!

Thaddeus 5 months ago

I think D) is misleading. Even if it's their property, they still need to follow the rules.

Nadine 5 months ago

A) is definitely the issue here. Gotta disclose the APR!

Dahlia 6 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.

Miriam 6 months ago

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

Beatriz 6 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.

Dianne 6 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.

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