Section 39 unit 5 lesson 2 Flashcards

Section 39 unit 5 lesson 2 Flashcards Licensees may encounter several potential issues when advertising and marketing property. Match each issue with its meaning.ExaggeratingA. NegligenceB. PuffingC.Negligent misrepresentationD. Passive fraudE. Active fraud

• Puffing

You'll want to steer well clear of misrepresentation and fraud in your career, and the best way to do that is to understand what they are and aren't. Identify these statements as true or false.Clients often sue their agents for disclosing material information.TrueFalse False Licensees may encounter several potential issues when advertising and marketing property. Match each issue with its meaning.Falling in the duty of careA. NegligenceB.PuffingC. Negligent misrepresentationD. Passive fraudE.Active fraud

• Negligence

Intentional misrepresentation can include omission of a material fact and not simply a misstatement of one. If the law imposes a duty to disclose a known fact and someone intentionally remains silent, it's passive fraud, which is intentional nondisclosure. Active fraud is intentional misstatement of a material fact. These are two sides of the same coin, and both are fraud.continue Licensees may encounter several potential issues when advertising and marketing property. Match each issue with its meaning.Intentional nondisclosure of a known factA.NegligenceB. PuffingC. Negligent misrepresentationD.Passive fraudE. Active fraud

• Passive fraud

Chris is considering how to present his listing. He's known for his aggressive marketing tactics, but he doesn't want to cross the line into misrepresentation. Help Chris identify these statements as puffery or misrepresentation.This view will never be obstructed!A. PufferyB. Misrepresentation

• Misrepresentation

Chris is considering how to present his listing. He's known for his aggressive marketing tactics, but he doesn't want to cross the line into misrepresentation. Help Chris identify these statements as puffery or misrepresentation.Enjoy a view that never gets old!A. PufferyB. Misrepresentation

• Puffery

Chris is considering how to present his listing. He's known for his aggressive marketing tactics, but he doesn't want to cross the line into misrepresentation. Help Chris identify these statements as puffery or misrepresentation.A view you've only dreamed of!A. PufferyB. Misrepresentation

• Puffery

What's the difference between puffing and misrepresentation?A. Puffing involves an intent to mislead, and misrepresenation is only intended to draw attention through an inflated claim.B. Puffing appears to a reasonable person as an exaggerated statement that would not be relied on, whereas misrepresentation occurs when a reasonable buyer would consider the statement reliable.C.Puffing is aimed at a buyer audience, and misrepresentation is aimed at sellers.

• Puffing appears to a reasonable person as an

exaggerated statement that would not be relied on, whereas misrepresentation occurs when a reasonable buyer would consider the statement reliable.An example would be a listing agent who saw the potential to subdivide a property but didn't inform the seller client.That agent then purposely didn't market the property or present offers, and then bought the property at a deep discount for the agent's own profit.example Puffing (or puffery)involves a bit of hyperbole (exaggeration). An example

would be: "This has to be the deal of the century." There's

nothing wrong with puffing, provided you're sincere and you don't say the same thing about every house you list or show a buyer. Puffing slides into the realm of misrepresentation or even fraud when you intentionally state falsehoods about a property. "This property's going to appreciate more than any other home in this neighborhood simply because of its location" is pushing it. You could say, "This property should appreciate over time due to its location" and be on safe ground, but by making an unsubstantiated claim, you are misrepresenting the facts. If you went further and said, "I have it on good authority that this property's due for a 15% appreciation hike next year," then this is blatant misrepresentation because there's no way to know this.If you're ever wondering whether something is puffing or misrepresentation, ask yourself whether it could be tested in a court of law. If it could, be very sure of your facts before you speak.Chris is considering how to present his listing. He's known for his aggressive marketing tactics, but he doesn't want to cross the line into misrepresentation. Help Chris identify these statements as puffery or misrepresentation.Home values in this neighborhood are going to skyrocket in the next five years!A. PufferyB. Misrepresentation

• Misrepresentation

Negligent misrepresentationcan occur when someone makes a statement that she should've known was false. Misrepresentation is fraudulent when it's intentional misrepresentation. Fraud and intentional misrepresentation are essentially the same thing and mean not only should the person have known better, but she did know better and intentionally remained silent or

misstated the facts.Chris is considering how to present his listing. He's known for his aggressive marketing tactics, but he doesn't want to cross the line into misrepresentation. Help Chris identify these statements as puffery or misrepresentation.Best house on the block!A. PufferyB. Misrepresentation

• Puffery

You'll want to steer well clear of misrepresentation and fraud in your career, and the best way to do that is to understand what they are and aren't. Identify these statements as true or false.An agent who fails to recommend a home inspection to his buyer client in order to prevent a sale from falling through is guilty of fraud.TrueFalse True Clients often sue their agents for negligence because they believe the agent did-or didn't-do any of the following

things:

-The agent should have known something or did know something that she didn't disclose.-The agent took an adverse action that harmed the client.-The agent failed to take action when she should have, which harmed the client.This goes to the duty of reasonable skill and care that all agents owe their clients. Negligence is failing in the duty of care. An example would be failing to present an offer on behalf of a buyer client in a timely manner, which resulted in the seller accepting an offer from another buyer. Or the agent failed to notify the buyer of the importance of having a professional home inspection, and, after the sale, the buyer discovered latent material defects that would have caused him to either offer less for the property or to rescind his offer.You'll want to steer well clear of misrepresentation and fraud in your career, and the best way to do that is to understand what they are and aren't. Identify these statements as true or false.Clients often sue their agents when agents didn't disclose something they should have known.TrueFalse True Licensees may encounter several potential issues when advertising and marketing property. Match each issue with its meaning.Intentional misstatement of a material factA.NegligenceB. PuffingC. Negligent misrepresentationD.Passive fraudE. Active fraud

• Active fraud

Licensees may encounter several potential issues when advertising and marketing property. Match each issue with its meaning.Making a statement the licensee should have known was falseA. NegligenceB. PuffingC. Negligent misrepresentationD. Passive fraudE. Active fraud

• Negligent misrepresentation

You'll want to steer well clear of misrepresentation and fraud in your career, and the best way to do that is to understand what they are and aren't. Identify these statements as true or false.Intentional misrepresentation includes omission of a material fact.TrueFalse True