Question

A broker advertised in his local newspaper that a home was for sale for $50,000 when it was really for sale for $500,000. A buyer called in and was told that this was simply a typing error and that the correct price was $500,000. The buyer was angry that the associate was so arrogant on the phone and the buyer filed a written complaint with the FREC. The most serious determination by the FREC would be to:

a.Punish the broker with an administrative fine of $1000 up to a one-year suspension.
b. Punish the broker with an administrative fine of $120 up to a 10 days suspension.
c. Punish the broker with an administrative fine
d. Punish the broker with an administrative fine of $10000 up to a ten-year suspension.

Answer 1

The correct answer is alternative A

Step-by-step explanation:

When a broker issues an advertisement for the sale of a property he becomes fully responsible for the present information. In no way should information lead people to false information to gain a marketing advantage. All advertisements must be realistic with the real-state in question without misleading potential buyers. If this is not done correctly the broker will be punished with a severe fine and one year suspension.