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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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.
More Tx Fair Housing Dtpa Questions
A homebuyer in Houston files a DTPA claim against a seller who failed to disclose known termite damage. The seller's attorney argues that the DTPA does not apply because the transaction involved real property, not "goods or services." Under Texas law, is this defense valid?
A homeowner in Plano files a fair housing complaint with the Texas Workforce Commission alleging housing discrimination. Under Texas law, within what timeframe must the complaint be filed after the alleged discriminatory act?
A developer in Houston builds a new 24-unit apartment complex with an elevator in 2025. Under the Fair Housing Act's design and construction requirements as enforced by HUD in Texas, which of the seven accessibility standards requires that reinforcements be installed in bathroom walls?
A Texas property manager receives a request from a tenant with a mobility disability to install a wheelchair ramp at the unit entrance. The property is a federally funded housing development. Under Section 504 of the Rehabilitation Act, who pays for the modification?
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 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 Texas apartment complex built in 1993 with four or more units has common areas that are not accessible to persons using wheelchairs. The building was constructed with no elevator, and all units are on the second and third floors. A disabled prospective tenant files a complaint. Under the Fair Housing Act's design and construction requirements as enforced in Texas, which of the following is MOST accurate?
- → A tenant with a psychiatric disability in a Texas apartment requests an emotional support animal. The property manager asks for documentation. Under HUD guidance (FHEO Notice 2020-01), what type of documentation may the property manager request?
- → A Texas homeowner who owns three single-family homes sells one of them without using a real estate license holder or discriminatory advertising. The homeowner has not sold any other property in the past 24 months. Under the federal Fair Housing Act, is this sale exempt from fair housing requirements?
- → Before filing a DTPA lawsuit against a home seller in Texas, a buyer's attorney must comply with a specific pre-suit requirement. Which of the following correctly describes this requirement?
- → A landlord in Houston refuses to rent an apartment to a family because they have two children under the age of 10. The tenants file a complaint. Under the Texas Fair Housing Act, which protected class has been violated?
- → A Texas license holder is reviewing fair housing law with a new sales agent. The license holder explains the seven federal protected classes. Which of the following is NOT a protected class under the federal Fair Housing Act as enforced in Texas?
- → 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 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?
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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?