Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate sales associate is found to have made a false promise to a potential buyer regarding future development plans near a property, knowing the plans were not confirmed. This action is most likely considered a violation of which ethical duty or legal standard?
- ADuty of confidentiality
- BDuty of obedience
- CMisrepresentation
- DPuffing
Show answer & explanationAnswer & explanation
Correct answer: C. Misrepresentation
Making a false statement of fact, especially when knowing it's unconfirmed, constitutes misrepresentation. Puffing involves exaggerated statements of opinion, not false statements of fact.
Why the other options are wrong
- A. Confidentiality relates to protecting client information, not false statements to third parties.
- B. Obedience relates to following lawful instructions from a principal, not truthful disclosure to third parties.
- D. Puffing is an exaggerated statement of opinion, not a false statement of an actual or future fact, and is generally not considered illegal.
Misrepresentation (Real Estate)
A false statement of a material fact, or the concealment of a material fact, made to induce another party to act, which can be intentional or unintentional.
- False statement of a material fact.
- Can be intentional (fraudulent) or unintentional (negligent).
- Differs from puffing (exaggerated opinion).
Memory trick: Truth is the goal; anything less is a problem.