An advertisement must be taken down once the property is gone
A worked RES examination question on advertising marketing, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Agent Nora places a property advertisement. She has the owner's spoken go-ahead but nothing in writing, advertises at a price $50,000 below what the owner instructed to draw calls, and leaves the listing live for two weeks after the unit is leased. Her classified newspaper advertisement omits her licence and registration numbers.
Consider the following statements.
- (i) Nora needed the owner's prior written agreement before she placed the advertisement.
- (ii) Nora's advertised price must match the price the owner instructed.
- (iii) Nora's classified newspaper advertisement may omit the licence and registration numbers, but must still show the registered name and a contact number.
- (iv) Now the unit is leased, Nora must take the advertisement down rather than leave it live to market other units.
The answer, and why
Answer: D
The rule. A property advertisement requires the owner's prior written agreement; the advertised price must match the price the owner instructed; and a classified newspaper advertisement, though it may omit the licence and registration numbers, must still show the registered name and a contact number. An advertisement must be taken down once the property is gone.
Why D is correct. All four are correct: (i) the prior written agreement; (ii) the matching price; (iii) the classified-advertisement particulars; and (iv) that the listing must be removed, not left live to market other units, once the unit is leased.
The other options.
- A drops (iv), taking the listing down after the let.
- B drops (ii) and (iv), the matching-price rule and the take-down duty.
- C drops (i) and (iv), the written-agreement requirement and the take-down duty.
Exam note. Written go-ahead first, advertise at the instructed price, and take the listing down once the property is gone.
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