An agent's exaggerated, subjective opinion about a property's features that is not considered fraudulent misrepresentation.
Why Puffing matters on the exam
This term belongs to Agency. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Puffing
Every Freehold question shows why the right answer is right — and cites its source.
A listing agent describes a property as having 'amazing curb appeal' in the marketing remarks. This statement is best characterized as:
Puffing, an expression of subjective opinion rather than a factual claim, and generally not actionable
Fraud, since such statements generally and directly influence a reasonable buyer's own purchasing decision
Negligent misrepresentation of a material fact about the property's condition
A fiduciary breach owed to the buyer, who relied on the listing agent's description of the home's exterior
Show answer & explanation
Puffing, an expression of subjective opinion rather than a factual claim, and generally not actionable — Puffing consists of subjective, exaggerated opinions used in sales talk, like praising curb appeal, which are not factual claims and are not legally actionable as misrepresentation.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
An agent tells a buyer, knowing it to be false, that 'the roof was replaced last year.' The buyer relies on this statement in deciding to purchase, and later discovers the roof was never replaced. The buyer's strongest claim against the agent is:
Puffing, an exaggerated opinion a reasonable buyer would not treat as a statement of fact
Breach of the duty of obedience, which requires an agent to follow the principal's lawful instructions promptly
Ratification, meaning a principal's later formal approval of an act the agent originally had no authority to perform
Fraud, since the agent knowingly made a false statement of material fact intending the buyer to rely on it
Show answer & explanation
Fraud, since the agent knowingly made a false statement of material fact intending the buyer to rely on it — Knowingly making a false factual statement, intending the buyer to rely on it, and causing resulting harm are the elements of fraud, not merely puffing or an honest mistake.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
For a misrepresentation claim to succeed, the statement at issue generally must involve:
A material fact, rather than merely an opinion or ordinary sales talk
A statement made in a signed writing, since an oral statement can never be actionable
A statement made after the closing has already taken place and title has transferred
A statement about the buyer's own finances rather than about the property itself
Show answer & explanation
A material fact, rather than merely an opinion or ordinary sales talk — Misrepresentation claims require a false statement of material fact, since statements of opinion or exaggerated sales talk (puffing) are not legally actionable.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
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