Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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What must an advertisement that touts commissions \textit{as low as 2%} include to provide full context?

A disclosure to elucidate the circumstances when the lowest rate is applicable
A dollar range in addition to the percentage
An indication that 2% is the absolute standard rate
No disclosure as the statement is self-explanatory

The correct answer is: A disclosure to elucidate the circumstances when the lowest rate is applicable

In the context of real estate advertising, it is crucial to provide all the necessary information to ensure transparency. A disclosure to elucidate the circumstances when the lowest rate is applicable is essential when an advertisement touts commissions "as low as 2%." This kind of advertisement can attract potential clients by highlighting the low commission rate, but it is equally important to make it clear when this rate would apply and under what conditions. This disclosure helps in providing full context to potential clients and avoids any misunderstandings or misinterpretations regarding the commission rate being advertised. Options B and C are incorrect as they do not address the need for a disclosure to explain the circumstances surrounding the lowest rate. Option D is incorrect as it is not self-explanatory and lacks the necessary detail for consumers to fully understand the context of the advertised commission rate.