Greenfield Realty, a Massachusetts brokerage, runs an advertisement stating: 'Properties in this neighborhood are selling fast — now is the time to sell before values drop!' The brokerage has no factual basis for the prediction that values will drop and makes this statement solely to generate listings. Two sellers list their properties based on this urgency claim, but values in the area actually increase over the next six months. Under Massachusetts law, which of the following most accurately describes the potential legal exposure for Greenfield Realty?
Correct Answer
B) Liability under MGL Chapter 93A for using a deceptive urgency claim to induce sellers to list, which constitutes an unfair or deceptive practice
MGL Chapter 93A prohibits unfair or deceptive acts and practices in trade or commerce. Greenfield Realty's advertisement uses a false urgency claim — a prediction of value decline with no factual basis — specifically to induce sellers to list their properties. This is a textbook deceptive practice under Chapter 93A. The fact that the prediction proved wrong (values increased) further demonstrates the claim's falsity. Using manufactured fear to pressure consumers into commercial decisions is an unfair practice under Chapter 93A, and the brokerage could face double or treble damages and attorney's fees if sued by the affected sellers.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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