Marcus, a Missouri real estate broker, markets a lakefront property by distributing flyers that describe the lot as having 'direct, unrestricted lake access,' when in fact a recorded easement grants a neighboring property owner the exclusive right to use the only path to the lake. A buyer purchases the lot based on the flyers and later discovers the easement. Under the Missouri Merchandising Practices Act, Marcus's conduct is best characterized as which of the following?
Correct Answer
A) A potential violation because the flyer contained a misleading statement about a material property characteristic
The Missouri Merchandising Practices Act, RSMo § 407.010 et seq., prohibits misleading statements in connection with the sale of real estate. Describing a property as having 'direct, unrestricted lake access' when a recorded easement grants a neighbor exclusive use of the only access path is a misleading representation of a material property characteristic—one that would foreseeably affect a buyer's decision and the value of the property. The MMPA covers not only outright false statements but also misleading or deceptive ones, making this conduct a potential MMPA violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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