Agency
In New Mexico, what does the REALTOR® Code of Ethics require regarding truthfulness in advertising?
AAll advertising must be approved by the NMREC before publication
BAgents must not knowingly make false or misleading statements in advertising✓ Correct
COnly online advertising must be truthful
DAdvertising rules apply only to listing agents
Explanation
The REALTOR® Code of Ethics Article 12 requires REALTORS® to be honest and truthful in their real estate communications and to present a true picture in advertising and marketing.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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