Practice & ContractsQuestion 112 of 120

A licensee who tells prospective buyers false information about a competing listing to steer them to their own listing has most likely committed:

a.Lawful advertising
b.Permissible puffing
c.A fiduciary duty to the buyer
d.An unethical and possibly fraudulent act

Explanation

Deliberately making false statements about another listing to divert buyers is dishonest dealing that violates professional ethics and California license law. It can constitute fraud or misrepresentation subject to discipline. Licensees must deal honestly with all parties.

Law Reference: CA Business & Professions Code

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