Agency
When is puffing in real estate advertising acceptable?
ANever — all statements must be factual
BWhen it involves general, non-specific praise that a reasonable buyer would not rely on as a statement of fact✓ Correct
CWhen approved by the Indiana Real Estate Commission
DWhen disclosed as an opinion in the listing contract
Explanation
Puffing (puffery) — general, non-specific praise such as 'the most beautiful home in the neighborhood' — is generally acceptable because a reasonable buyer would not rely on it as a statement of fact. Specific false statements of fact, however, constitute misrepresentation.
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