Puffing In Real Estate
Definition of "Puffing in real estate"
The definition of puffing in real estate, also known as puffering, is an exaggeration of fact bordering on falsehood. You’ve probably heard a real estate agent make outrageous claims about their listing, lauding its outstanding qualities, only to find that the “outstanding” listing is not all that outstanding.
Puffing happens all the time in real estate, and under certain circumstances, it can be criminally punishable, so it’s best to be careful when making claims about your listing or its qualities. Let’s look at a couple of examples of puffing, and when it is and isn’t legal.
Examples of puffing in real estate
Puffing is very common in real estate, as previously stated. Real estate agents will do whatever it takes to sell a listing, and exaggerating a listing’s good qualities is not anywhere near the top of the list of crazy things real estate agents have done to sell a property. Ultimately, exaggerating your listing’s qualities is ok, as long as you don’t make any fraudulent claims about the listing you’re selling. Let’s look at a couple of examples that illustrate the difference between harmless exaggeration and fraudulent claims about a listing’s qualities.
For our first example of puffing in real estate, let’s take the case of a real estate agent named Janet. Janet has a listing that isn’t all that attractive on its own merits; it’s an aging bungalow from the 1980s in a low-income neighborhood, with a patchy lawn and peeling siding. Now, to make this listing seem more marketable, Janet exaggerates her listing’s good qualities.
She doesn’t mention the run-down appearance of the house, nor the poorly groomed lawn. She gushes about how “cozy” and “rustic” the house is when most would find it cramped and aging instead. This is a great example of puffing, and this type is generally perfectly legal. You’re not lying, after all; you’re just exaggerating.
A different, more insidious example of puffing in real estate is that of a realtor we will call Michael. Michael has a listing that wouldn’t be difficult to sell if it weren’t for one crucial detail: the owner wants an exorbitantly high price for the property. In order to sell the property, Michael takes a number of liberties with the facts about the listing.
He exaggerates the crime statistics of the area in which the listing is located so that it seems safer than it is. He lies about the state of repair the house is in, talking about how the plumbing is in excellent condition when in reality there are leaks and hard water sediment buildup. Depending on how severe these lies are, Michael could face fines or even jail time if they are discovered and proven. Ultimately, puffing is permissible only in as much as it does not entail fraud.
Popular Real Estate Terms
Goods that are freely substitutable. It is goods of a given class or type, any unit of which is as acceptable as another, and capable of satisfying an obligation expressed in terms of the ...
Individual who gives false statements under oath, which is a criminal act punishable by imprisonment and fine. An example is signing a tax return that fraudently understates rental income, ...
Roof having four triangular sides forming a point at the top of a pyramid. A pyramid roof is primarily used for steeples on top of churches or certain public buildings. ...
Also called all inclusive trust deed (AITD). A mortgage (trust deed) that encompasses existing mortgages and is subordinate to them. The existing mortgages stay on the property and the new ...
The term statute is a written law that is adopted by a legislative body from the country, federal, state, county, or city level. The statute definition can be a legislative written decree ...
An accessory building is an outdoor structure used by the occupants of the main building or house. They have different functions and can be detached or attached to the main building on the ...
Laws enacted by every state governing the activities and requirements of real estate salespeople and brokers. Upon satisfying the necessary age and residency requirements and satisfactorily ...
An individual appointed by a court to manage the affairs and property of a legally incompetent party. The conservator has full decision-making authority over the affairs of the property in ...
Land that has poor income potential, usually used in an agricultural sense meaning that the land is untellable, has poor access, is extremely steep, has suffered serious erosion, is ...
Have a question or comment?
We're here to help.