Agency
In Minnesota, 'puffery' in advertising differs from 'misrepresentation' in that:
APuffery is illegal; misrepresentation is allowed
BPuffery is subjective opinion or obvious exaggeration; misrepresentation is a false statement of material fact✓ Correct
CPuffery applies only to commercial properties
DMisrepresentation is only written; puffery is only spoken
Explanation
Puffery involves subjective opinions or obvious exaggerations ('best neighborhood in the city,' 'incredible views') that no reasonable person would take as factual. Misrepresentation involves false statements of material fact ('brand new roof,' 'no known defects').
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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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