Final answer:
A licensee selling their own property should provide a transparent advertisement that is truthful, without false claims, yet may contain some ambiguity or exaggeration. The principle of 'Caveat emptor' highlights the need for buyer diligence, and the FTC monitors advertising to ensure accuracy and prevent deception.
Step-by-step explanation:
When a licensee is selling their own property, it is important for the advertisement to be clear and candid to prevent misleading potential buyers. The Federal Trade Commission (FTC) monitors the factual claims made in advertisements to ensure they are not false; however, some ambiguity and exaggeration may still be permissible as long as they do not constitute untrue facts. The principle of Caveat emptor, which means "let the buyer beware," underscores the importance of due diligence on the part of the buyer, emphasizing that while advertisements may captivate and entice, they may also omit less favorable details, such as a neighboring landfill or factory that may affect the property's value.
Therefore, the advertisement should not only highlight the strengths of the property but also be transparent about potential limitations, offering a fair representation of the investment. This aligns with ethical practices and helps to maintain trust and integrity in the real estate industry.