Kovats Real Estate School Practice Test

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Prepare for the Kovats Real Estate Exam with our comprehensive quiz. Utilize multiple-choice questions and detailed explanations to boost your confidence and knowledge. Gear up for success!

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In advertising a listed property for sale, what is a broker NOT legally permitted to do?

Run an ad giving the impression that he is the owner of the property
Use a third-party service for property valuations
Advertise open houses without proper authorization
Promote properties below market value

The correct answer is: Run an ad giving the impression that he is the owner of the property

A broker is not legally permitted to run an ad that gives the impression that he is the owner of the property because this misrepresentation can lead to confusion and potentially fraud. A broker’s role is to facilitate a transaction between the actual owner of the property and potential buyers, and advertising in a way that suggests ownership could deceive consumers about the nature of the broker's relationship to the property. This practice violates principles of honesty and transparency that are essential in real estate transactions. While using a third-party service for property valuations can be done as long as it complies with legal and ethical standards, advertising open houses typically requires proper authorization from the owner to ensure that the broker is acting within their rights. Promoting properties below market value is not inherently illegal; it may be a strategy, although it must be done in a way that is not misleading or fraudulent. In contrast, implying ownership through advertising is a clear violation of legal and ethical standards in the industry.