A Texas real estate license holder provides a buyer with a comparative market analysis (CMA) that inflates comparable sale prices to persuade the buyer to offer above market value on a listing. The buyer later learns the comps were inaccurate and files a DTPA claim. The license holder asserts a defense under the DTPA. Which defense is MOST likely to succeed?
Correct Answer
C) The license holder relied on MLS data that was inaccurate at the time the CMA was prepared, and the reliance was reasonable
Under the DTPA, a defendant may assert that the alleged misrepresentation was based on reasonable reliance on information from a third-party source. If the license holder genuinely relied on inaccurate MLS data and the reliance was reasonable, this could serve as a defense. However, the license holder must demonstrate that they did not know or should not have known the data was inaccurate.
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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.
More Tx Fair Housing Dtpa Questions
A real estate license holder in Dallas shows properties only in certain neighborhoods to a Hispanic buyer, steering them away from predominantly white areas. The buyer suspects discrimination. Which Texas agency would handle the initial complaint?
A property manager in San Antonio implements a blanket policy requiring all applicants to have a credit score above 750 to qualify for rental housing. Data shows this policy disproportionately excludes African American and Hispanic applicants. Under the Texas Fair Housing Act, what type of discrimination claim could be brought?
A Texas real estate office is located on the ground floor of a commercial building. A prospective client who uses a wheelchair cannot enter the office because of a four-inch step at the entrance. Under the ADA, what must the real estate brokerage do?
Under the Texas Fair Housing Act and federal law, a landlord must make reasonable accommodations for tenants with disabilities. Which of the following would NOT be considered a reasonable accommodation?
A Texas apartment complex built in 2023 with an elevator has light switches installed at 54 inches above the floor throughout all units. A tenant using a wheelchair cannot reach the switches. Under the Fair Housing Act's design and construction requirements, which standard has been violated?
- → Under HUD's Fair Housing Act design and construction requirements, which of the following is one of the seven accessibility standards required for covered multifamily dwellings first occupied after March 13, 1991?
- → A Texas property management company operates a 50-unit apartment complex open to the public. A prospective tenant who uses a motorized wheelchair inquires about accessibility. Under the Americans with Disabilities Act (ADA), which areas of the complex must be accessible?
- → A deaf tenant in a Texas apartment complex requests that the property manager communicate all important notices via email or text message rather than solely by phone calls. Under the Fair Housing Act as enforced through HUD in Texas, how should the property manager respond?
- → Under HUD regulations enforced in Texas, what is the difference between a "reasonable accommodation" and a "reasonable modification" in the context of fair housing for persons with disabilities?
- → A Texas apartment complex was built in 2020 with 16 ground-floor units and an elevator serving all four floors. Under the Fair Housing Act's design and construction requirements, how many units must meet the seven accessibility standards?
- → Under HUD's guidance on assistance animals as enforced in Texas, a housing provider may deny a request for an assistance animal in all of the following situations EXCEPT when:
- → Under HUD regulations and the Fair Housing Act as enforced in Texas, which of the following is NOT one of the seven design and construction requirements for covered multifamily dwellings?
- → A Texas apartment complex owner is found liable for a Fair Housing Act violation in federal court. Under 42 U.S.C. §3613, what remedies may the court award to the prevailing plaintiff?
- → A Texas commercial building owner converts a warehouse into a mixed-use property with 8 residential loft apartments and a retail space on the ground floor. The building was constructed in 1970 and has no elevator. Under the ADA and the Fair Housing Act, which of the following BEST describes the owner's obligations?
- → A HUD investigation in Texas reveals that an architect designed a 40-unit apartment complex that fails to meet the Fair Housing Act's design and construction requirements. Under HUD enforcement, who may be held liable for the accessibility violations?
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Previous Question
A property management company in Dallas charges tenants excessive fees for normal wear and tear repairs upon move-out, keeping the entire security deposit without justification. A tenant wants to pursue a claim. Under the Texas DTPA, what type of violation does this conduct represent?
Next Question
A builder in Houston sells a newly constructed home to a buyer with an express warranty covering structural defects for 10 years. After three years, the foundation develops cracks. The builder refuses to honor the warranty. The buyer files a DTPA claim. Under which DTPA provision can the buyer proceed?