California Real Estate Practice Exam

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A broker advertises a home with two scraggly bushes and a lightning-damaged tree as having beautiful landscaping. This is most likely an example of:

Fraud
Puffing
Misrepresentation
Negligence

The correct answer is: Puffing

The scenario describes a broker who is exaggerating the quality of the home's landscaping by using the term "beautiful" to refer to what is actually just two scraggly bushes and a damaged tree. This is an example of puffing, which is a salesperson's exaggerated opinion or subjective statement about a property's attributes. Puffing is generally accepted in real estate advertising, as it is understood that these descriptions are not factual claims that can be proven or disproven. Puffing differs from misrepresentation, which entails providing false information that can be construed as a fact, and from fraud, which involves deceit with the intent to manipulate. While the broker's claim may not accurately represent the property's condition, it is an opinion rather than a false statement about a matter of fact. Therefore, in this case, describing the landscaping in such an embellished manner fits squarely within the bounds of puffing.