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Tx Fair Housing DtpaDtpa_consumer_protectionMEDIUM

A license holder in Arlington falsely tells a buyer that a property is located in a flood zone eligible for reduced-rate flood insurance, when in fact the property is in a high-risk flood zone requiring expensive coverage. The buyer purchases the property and incurs $5,000 more annually in flood insurance. Under the DTPA, which laundry list item BEST applies?

Correct Answer

B) Representing that goods or services have benefits or characteristics they do not have

Under Texas Business & Commerce Code §17.46(b)(5), representing that goods or services have characteristics, uses, or benefits they do not have is a laundry list violation. The license holder affirmatively misrepresented the property's flood zone status, which is a characteristic of the property that directly affects its cost of ownership.

Answer Options
A
Representing that a guarantee or warranty confers rights it does not have
B
Representing that goods or services have benefits or characteristics they do not have
C
Knowingly making a false or misleading statement of fact concerning the need for services
D
Failing to disclose information concerning goods or services known at the time of the transaction

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Related Topics & Key Terms

Key Terms:

dtpalaundry_listflood_zonemisrepresentation

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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