EstatePass
Practice Of Real EstateLicense_lawMEDIUM

Broker Dana runs a Connecticut brokerage called 'Dana's Realty Group.' She places an online ad for a listing that describes the property as having 'a newly renovated kitchen' when, in fact, only the countertops were replaced five years ago. A buyer relies on this description and purchases the property. Under Connecticut law, which of the following is MOST accurate?

Correct Answer

D) Dana may face discipline under CREC and civil liability under CUTPA for the misleading advertisement

Describing a property as having a 'newly renovated kitchen' when only countertops were replaced years ago constitutes a material misrepresentation in advertising. Under Connecticut's Unfair Trade Practices Act (CUTPA, CGS § 42-110a), deceptive advertising in real estate transactions is prohibited and can result in civil liability including damages and attorney's fees. Additionally, CREC may impose disciplinary action against Dana's license for the misleading advertisement.

Answer Options
A
Dana's liability is limited to returning her commission, as that is the only remedy under Connecticut license law
B
Dana is protected from liability because the buyer had an opportunity to inspect the property before purchase
C
Dana has no liability because puffery and promotional language are permitted in real estate advertising
D
Dana may face discipline under CREC and civil liability under CUTPA for the misleading advertisement

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

advertising_rulesmisrepresentationcutpacrec_disciplinematerial_facts

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing