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Tx Fair Housing DtpaDtpa_consumer_protectionMEDIUM

A buyer in Austin discovers that a license holder made false representations about the square footage of a home, resulting in a $30,000 overpayment. The buyer files a DTPA claim and proves the misrepresentation was made knowingly. What is the maximum damages the buyer can recover under the DTPA?

Correct Answer

C) $90,000 (treble the actual damages) plus attorney's fees

Under the Texas DTPA (Business & Commerce Code §17.50(b)(1)), when a defendant's conduct is found to be committed knowingly, the court may award up to three times the actual damages (treble damages). For a $30,000 actual damage, this equals $90,000. The DTPA also provides for recovery of reasonable and necessary attorney's fees under §17.50(d).

Answer Options
A
$30,000 in actual damages only
B
$60,000 (double the actual damages) plus attorney's fees
C
$90,000 (treble the actual damages) plus attorney's fees
D
$30,000 in actual damages plus a $10,000 statutory penalty

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Related Topics & Key Terms

Key Terms:

dtpatreble_damagesknowing_violationmisrepresentation

Related Concepts

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.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

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