Question 89

Real estate licensees must avoid stating "buy for less than $650 per month."

When advertising real estate for sale, licensees must avoid making misleading statements about financing options, such as suggesting a specific payment amount that could be interpreted as a guarantee.

A) assumable loan

The term "assumable loan" is a legitimate financing option that real estate licensees can discuss in their advertisements. It refers to a loan that a buyer can take over from the seller, which is a standard practice in real estate transactions.

B) owner willing to finance

Indicating that the "owner is willing to finance" is also acceptable and provides potential buyers with information about possible financing arrangements. This statement can attract buyers who may need alternative financing methods.

C) FHA and VA financing available

Mentioning "FHA and VA financing available" is compliant with advertising regulations, as it highlights the types of financing options that may assist eligible buyers. These are federally backed programs that provide specific benefits to certain borrowers.

D) buy for less than $650 per month

This statement should be avoided because it may mislead consumers about actual costs and can imply specific financing terms that may not be universally applicable. It risks violating advertising regulations by suggesting a guaranteed payment without proper context or qualification.

Conclusion

The statement "buy for less than $650 per month" is problematic as it may mislead potential buyers regarding financing options and monthly payments. In contrast, options A, B, and C provide valid information that aligns with advertising guidelines. Therefore, option D is definitively the correct answer as it must be avoided in real estate advertising.