Tennessee Realtor State Practice Exam

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Prepare for the Tennessee Realtor State Exam with questions and explanations designed to help you succeed. Master the principles and regulations of real estate in Tennessee. Ace your exam with confidence!

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What is the consequence of Jerrold's actions when he misrepresents the home's size?

Potential loss of reputation
Legal action for fraud
A lower selling price
Better market competition

The correct answer is: Legal action for fraud

When Jerrold misrepresents the size of the home, the most significant consequence he faces is legal action for fraud. In real estate, providing false information, especially pertaining to important factors such as a property's size, can lead to severe legal ramifications. Misrepresentation undermines trust and can result in buyers feeling deceived, which may prompt them to pursue legal remedies to seek compensation for any damages incurred. Fraud in real estate involves intentional misrepresentation of facts that induce another party to enter into a transaction. Since the size of a property is a critical factor in determining its value and desirability, misrepresenting it breaches not only ethical guidelines but also legal standards of conduct within the industry. Should a buyer discover that they were misled about the size, they could potentially claim damages, leading to lawsuits against Jerrold. This legal consequence carries significant weight in real estate transactions, highlighting the importance of honesty and accurate representations.