transactions.3An unconscionable action or course of

4.5 Texas Deceptive Trade Practices Consumer Protection Act Flashcards Protects consumers rights against :> false, misleading, or deceptive acts.- Advertising.- Offering for sales.> practices by sellers (or sellers agents) that is less than forth right .>Leasing of Property.There are 3 circumstances that the DTPA will apply to the actions Real Estate Agents...1)An expressed misrepresentation of a martial fact that cannot be characterize as Advice,Judgement or Opinion.2)Failure to disclose info. that was concerning goods or services that was known at the time of transactions.3)An unconscionable action or course of

action that cannot be characterize as:

Covers innocent misrepresentations as well as promises that are left unfulfilled.>The act provides for both actual and punitive damages against the person making the misrepresentation of promise as well as anyone else who is aware of the misrepresentation and will be held liable for those acts since they are receiving benefits Sellers of Real Property or Residential are required $25,000,000Pop QuizWhen a Buyer is required to examine the property and buy at his/her own risk, it is referred to as.

The Deceptive Trade Practices Act: (DTPA) Protects consumers rights

Caveat EmptorPop QuizWhich of the following is considered misleading under the Texas Deceptive Trade Practice Act....?>$250,000 is for deceptive acts or practices that target the elderly.-Errors in omissions insurance policies by most brokerages will not cover fraud or intentional violations of the DTPA.Under the Texas real estate license act and the DTPA , the

fraud in Real Estate and Stock Transaction states:

Is limited to the attempt to decieveStatuary Fraud is limited to the attempt to deceive.Advertising the property w?no intention of selling property as advertise.Ex. Putting your own home on the market to pull in customers/clientele with no intentions on selling .Through this principle the courts charge the buyer with all of the responsibilities. If a Purchaser is buying the property

then they are responsible for: Inspecting the property.

Searching public records, to make sure no one else has an interest in the property. The parties in possession has the right to sell the property.This principle has been modified to where the courts are putting more responsibility on the sellers. (ITS NOT JUST THE BUYERS WHO HAVE TO

BEWARE.)

Pop QuizThis Act protect consumers against false , misleading or deceptive acts...?Each party to the law suit filed under the DTPA may file motion to compel the parties to mediation of the dispute to settle.What are the defenses of the DTPA?

In order for a Consumer To Wave Their Rights the

following is needed:

1) The wavier must be in writing and signed by the consumer2) The consumer must not be in significantly dispersant bargaining position,3)The consumer must be represented by legal counsel in seeking or acquiring the goods and services.4) The wavier must be conspicuous and in bold face type at least 10 points in size5)The wavier must be in substantially promulgated form under the

heading: Wavier of consumer Rights .

In 2011, The Texas Legislature made an attempt to reduce the frivolous law suit against Sales Persons and Brokers .By stating,....?that the DTPA does not apply to claims arising from act or admission by a Broker or Sales Person with certain acceptations.Representing something as new,original or of particular quality when it's not.>New- Still in its original packaging> Nearly New- Has been removed from packaging but never used.>Recent- Recent appliances . *Follow by date*® Ex. After being installed an oven the install date for will be Jan 5th 2018.>Quality -Brand type of item that is usually categorize

as : GOOD ,BETTER and BEST.

Consist of a laundry list of 27 items.1)Representing something as new,original or of particular quality when it's not.2)Advertising the property with no intentions of selling property as advertise.3)Marking False Statement of Fact4)Misrepresenting The Authority of an Agent to Negotiate The Final Terms of a Sales Contract.5)Rep. That a Warranty Guarantee Rights That Are Not Included.6) Rep. that work has been done on the property when there has not.Rep.s that work has been done on the property when there has not.It is >important to not use absolute or all-encompassing terms.(Complete, Finished, In total, etc.)>Instead say that the "item(s) remodeled in , (x) amount in time ." 3)An unconscionable action or course of action that cannot

be characterize as:

Advice,Judgement or Opinion .(Basically You Know Better than That .)

>If the defendant committed the act :-Knowingly - The

damages for mental anguish may also be awarded up to 3x's the amount of the actual damages.-Intentionally- The economic and mental anguish damages may be tripled .In addition of consumers compensation , there is also a provision with the DTPA that allows civil penalties of up to $20,000 per violation with an additional penalty up to

$250,000.

Even If the agent did not know ,they will still be charged due if they SHOULD have known.Caveat Emptor - Let the buyer beware To deliver a Seller disclosure notice to a Buyer.>The Seller goes through an item by item check list , Listing things the property has.-From :AC,Hot water.- To:Jacuzzi tubs, Installed Microwave.Describes any problems going on within the property.>Seller is Required to list anything and everything wrong with the property to the Buyer>To give the Buyers insight of the Seller knowledge about the property.Seller and Agent is charged for not disclosing any known or latent defects.

Making False Statement of Fact.:Usually consist w?Price

Reductions.>We do not reduce the sale unless we are instructed to do so .>Sellers will use.-Divorce_Relocation Of Job(Yet,these are not true.) Seller's Disclosure NoticePop QuizReal Estate Agents cannot be held liable for any false or misleading information about a property.DTPADeceptive Trade Practices ActPop QuizThe Seller is required to provide Buyers w/which of the following documents....?FalsePop QuizThe Texas Deceptive Trade Practices Act defines this individual as someone who seeks , or acquires , by purchase or lease , any good or services...?Within the 2years after the consumer discovered or should have discovered the deceptive act or practice.

There is an exception on Residential property:->The DTPA

does not apply to transactions that exceed $100,000 where there is a written contract->The consumer is represented by legal counsel.By statue consumers can wave their rights to bring suite to under the DTPA. However the courts has generally and consistently opined that upon holding any wavier of a consumer is contrary to public policy and is unenforceable and void.ConsumerPop QuizAccording to the Texas Deceptive Trade Practice Act , businesses w/assets exceeding ........are not considered consumers?>Anyone who stands to receive money from the transaction is presumed to know all aspects .- This includes

:BrokersSales PersonSellers.

Common Law Fraud 2)Failure to disclose info. that was concerning goods or services that was known at the time of transactions.>If the failure to disclose info. was intended to induce a consumer to a transaction.-Leaving out or putting information that dictates the consumers actions for your benefit.The buyer must examine the goods or property and buy at his or her own risk.Caveat Emptor Consumer> is defined by the DTPA as an ; Individual ,Partnership , a Corporation or a Texas Governmental Agency who seeks, or acquires, by purchase or lease, any goods or services.-Businesses with assets $24,000,000 or more are not considered consumers under the DTPA.>Reasonable offer of settlement within a time limit.> A written notice to the consumer prior to the beginning or to the closing of the sale. That the broker is relying on information prepared by others. *There are Forms for this

:Information From Other Sources*>Impossible for the

Broker to know the information was false or inaccurate.Should the consumer be successful and entitled to recovery under the DTPA. The recovery is limited to the economic damages.( Cost of repair and/or replacement.) 1)An expressed misrepresentation of a martial fact that cannot be characterize as Advice,Judgement or Opinion.

a) The agent Stated the property has had property

repairs.But by your own judgement you cannot see the repairs made.

What happens in a DTPA suite?1st. The consumer , must prove to the courts that the deceptive act was the reason for the damages.2nd) Any

such suites has to begin with:> 2 years after the false,

misleading or deceptive act practice occurred.>Within the 2 years after the consumer discovered or should have discovered the deceptive act or practice.