To avoid liability for misleading advertisement in real estate practice, what must a licensee demonstrate?

• A. That you took all the care of a reasonable person, and you honestly believed the information represented was true
• B. You only need to post disclaimers
• C. You must have no responsibility for the content of your advertisement
• D. You must consult a lawyer before advertising

Answer: (A)

In these situations, the key idea is the duty to avoid misrepresentation in advertising. A licensee can avoid liability if they can show they acted with the care a reasonable person would exercise and that they honestly believed the information they published was true at the time. This means doing due diligence—verifying facts, checking sources, and not spreading unverified or exaggerated claims. Simply putting a disclaimer isn’t enough to protect you, and you’re not required to consult a lawyer before advertising. The defense rests on your conduct and your honest belief in the accuracy of the information you shared.