Leasing License Practice Exam

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Prepare for the Leasing License Test using our comprehensive flashcards and multiple-choice questions. Each question includes hints and explanations to enhance your learning experience. Excel in your examination!

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When selling a home owned by a licensee, what must be indicated in advertisements?

It is for sale
It is "agent-owned" or "broker-owned"
It has been renovated
It is located in a desirable neighborhood

The correct answer is: It is "agent-owned" or "broker-owned"

When a home is owned by a licensee, it is essential to indicate that it is "agent-owned" or "broker-owned" in advertisements to maintain transparency in the real estate transaction. This requirement is in place to ensure that potential buyers are aware of the vested interest the licensee has in the property. Transparency helps to prevent any potential conflicts of interest or perceptions of unfair advantage that a licensee might have over a buyer who is unaware of the ownership situation. Indicating that the property is agent-owned or broker-owned allows prospective buyers to make informed decisions, understanding that the person facilitating the sale has a direct stake in it. This disclosure can foster trust in the transaction, as it shows professionalism and adherence to ethical standards in real estate practices.