Agency
Puffing in real estate is best described as:
ADeliberate false statements about material facts
BExaggerated, non-factual statements of opinion that a reasonable person would not rely upon✓ Correct
CWithholding material information from a buyer
DAdvertising a property at an inflated price
Explanation
Puffing consists of general, exaggerated statements of opinion ('best location in town') that are not representations of fact. While not ideal, puffing is generally not considered misrepresentation because a reasonable person would not rely on it.
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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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