Difficulty: Hard

Average Score: 25%

Which of the following statements by a licensee could cause the Missouri Real Estate Commission to file a complaint against the licensee?

Rationale

You will be able to sell this house at a good profit when the new grade school opens.

This statement could lead to a complaint as it implies a promise of future profit based on an anticipated event, which may be considered misleading or speculative by the Missouri Real Estate Commission. Licensees are expected to provide accurate and factual information, and making predictions about future market conditions can be deemed unethical.

A (This is the most beautiful view in the state.) YOUR ANSWER

While this statement expresses a subjective opinion about the property's view, it does not convey any misleading information or promise about the property's future value. Personal opinions on aesthetics are typically acceptable and do not warrant a complaint.

B (The former owner committed suicide.) YOUR ANSWER

Disclosing such information may be legally required under certain circumstances, depending on state laws regarding stigmatized properties. However, this statement does not involve misrepresentation or an attempt to induce a purchase based on future outcomes, thus it is unlikely to cause a complaint.

C (I feel this house is worth every bit of the listed price.) YOUR ANSWER

This statement reflects the licensee's personal opinion on the value of the property. As long as the opinion is based on factual assessment and not misleading, it is generally permissible and would not typically trigger a complaint from the commission.

Conclusion

In real estate, licensees must communicate honestly and avoid making speculative statements about future profits or market conditions. While personal opinions and disclosures can be part of a transaction, statements like the one regarding future profits can be problematic if they mislead potential buyers. The Missouri Real Estate Commission aims to protect consumers from potentially deceptive practices, making it crucial for licensees to focus on verifiable information.

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