A Massachusetts brokerage's advertisement states that a property is located in a 'highly desirable school district with top-rated schools.' The brokerage has not verified current school ratings and the information is based on data that is three years old. A buyer purchases the property in part based on this representation and later discovers the school ratings have changed significantly. Under Massachusetts law, which of the following is the most likely basis for a claim against the brokerage?
Correct Answer
B) MGL Chapter 93A, for making a misleading representation that constitutes an unfair or deceptive practice
MGL Chapter 93A prohibits unfair or deceptive acts and practices in trade or commerce. Advertising unverified school rating information that is materially outdated and misleads a buyer into purchasing a property constitutes a deceptive practice under Chapter 93A. Real estate licensees have an obligation not to make false or misleading statements in advertising, and failure to verify material claims can expose the brokerage to Chapter 93A liability, including double or treble damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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