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A client has given you several units to lease in the same block. The lowest priced one ($350/week) has been successfully leased but the landlord doesn’t want a new signboard with the new price on it (which shows ‘units starting from $450/week...').

What ethical and regulatory standards would you not be following if you were to do what the landlord instructs and leave the initial signboard up?

1 Answer

5 votes

Final answer:

Leaving up a signboard advertising rental units starting from $450/week when a unit has been leased for $350/week is misleading and could be considered false advertising. This practice is unethical and violates regulatory standards that demand accurate and truthful representation of rental prices.

Step-by-step explanation:

If you leave the initial signboard up that advertises 'units starting from $450/week' even though a unit has been leased for $350/week, you would be engaging in misleading advertising. This practice is both unethical and likely in violation of regulatory standards. In the real estate industry, it is essential to provide accurate information to potential tenants; failing to do so can undermine trust and could result in legal consequences for false advertising.

The information displayed to the public, including pricing information, should be truthful and reflect the actual conditions of the market. In the case described, the advertised price does not accurately represent the lowest priced unit available, which could deceive potential renters into believing that the cheapest available option is $450/week. This misrepresentation does not align with ethical standards for fair and transparent business practices. It likely also contravenes advertising regulations that require truthfulness in marketing materials.

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