Illinois Leasing Agent Practice Exam

What must a licensee include in their advertisement when selling their home?

1. Home for sale by owner

2. Asking for the best offer

3. Agent owned or broker owned

4. Fully renovated home

The correct answer is: Agent owned or broker owned

When a licensee is advertising a property they own, including the phrase "Agent owned" or "Broker owned" is essential for several reasons. Transparency is a key principle in real estate transactions. By disclosing their status as a real estate professional, the licensee allows potential buyers to understand any potential conflicts of interest. This disclosure helps ensure that the public is aware that the seller has knowledge of the real estate market and might have advantages in negotiating the sale. Moreover, many regulatory bodies and professional ethics organizations require such disclosures to maintain trust in the profession and protect consumers. Including this information also serves to fulfill legal advertising requirements, which may vary by state, but often emphasize the necessity of clear and honest communication in marketing real estate. In contrast, stating "Home for sale by owner" does not specify the licensee's professional status, and phrases like "Asking for the best offer" and "Fully renovated home" do not provide pertinent information regarding the seller's relationship to the property in terms of their professional qualifications and status. These latter options could mislead buyers about the seller’s professional expertise and create ambiguity in the transaction.