Which of the following is an example of incompetent practice by a real estate licensee?

Guaranteeing property appreciation based on historical trends is an example of incompetent practice by a real estate licensee because it misrepresents the nature of real estate investments. Real estate markets are influenced by a multitude of variables, including economic conditions, location, and market demand, and no professional can predict future values with certainty. By assuring a client that their property will appreciate based on past trends, the licensee is not adhering to professional standards or providing realistic and accurate information, which can mislead clients and potentially lead to financial loss. This behavior also undermines the trust and integrity expected from a real estate professional.

In contrast, offering a discount on commission fees and soliciting business outside of regulated hours may raise ethical considerations, but they do not inherently reflect incompetence. Providing legal advice on property matters strays into the legal realm, which requires a different set of credentials, but does not necessarily imply incompetence in real estate practice itself.