California Real Estate SalespersonLaws of Agency and Fiduciary DutiesMedium
During a showing, a listing agent tells prospective buyers, 'This is the best block in the whole neighborhood,' and also states, 'The roof was replaced just two years ago,' when in fact the roof is the original 30-year-old roof. Which statement exposes the agent to liability for misrepresentation?
- AOnly the statement about the neighborhood, since it is subjective
- BOnly the statement about the roof, because it is a false statement of material fact
- CBoth statements, because opinions and facts carry equal liability
- DNeither statement, since buyers must always verify claims independently
Show answer & explanationAnswer & explanation
Correct answer: B. Only the statement about the roof, because it is a false statement of material fact
'Best block in the neighborhood' is puffing—an exaggerated opinion that a reasonable buyer would not rely on as fact. The false statement about the roof's age is a specific, verifiable, material fact, and misrepresenting it exposes the agent to liability.
Why the other options are wrong
- A. The neighborhood comment is non-actionable puffing, not the liability trigger.
- C. Opinions (puffing) are treated differently from false factual statements.
- D. Buyers may reasonably rely on specific factual representations from an agent.
Puffing vs. Misrepresentation
Puffing is exaggerated opinion not intended to be taken literally, while misrepresentation is a false statement of material fact that can create liability.
- Puffing: subjective, non-actionable ('best neighborhood').
- Misrepresentation: false, specific, verifiable fact ('roof replaced').
- Agents are liable for material factual misstatements, not opinions.
Memory trick: 'Puff is fluff; fact is a whack (of liability).'