Fraud, Puffing & Misrepresentation in Real Estate


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question 1 of 3

Larry is a seller who fails to disclose that his house contains lead paint (as required by federal law). However, Larry never affirmatively makes a statement that the house is lead-free. What is Larry guilty of?

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1. Sarah tells her client that the Victorian style home she is showing is the most beautiful Victorian house in the city. What act has Sarah committed?

2. Debbie is representing a seller. At an open house, a prospective buyer asks Debbie a series of questions about the house, including why the sellers are selling. Debbie answers all the questions except her seller's motivation, because she has been instructed by her clients not to disclose that they are undergoing financial difficulties. What is Debbie guilty of?

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About This Quiz & Worksheet

Understanding fraud in real estate is a complex endeavor. This quiz and worksheet combo assesses your knowledge of different types of fraud.

Quiz & Worksheet Goals

Use these tools to gauge your understanding of:

  • Different forms of fraud
  • What exaggeration is called in real estate
  • Different fraudulent scenarios and examples

Skills Practiced

This worksheet and quiz allow you practice the following skills:

  • Reading comprehension - demonstrate that you can draw the most vital information from the lesson on fraud in real estate
  • Distinguishing differences - discuss the differences among the three different forms of fraud mentioned in the lesson
  • Defining key concepts - verify that you can correctly define key terms and concepts, such as puffing

Additional Learning

To learn more about fraud in real estate, review the lesson Fraud, Puffing, & Misrepresentation in Real Estate. This lesson has the following aims and objectives:

  • Define fraud
  • Discuss the various forms of fraud, actual fraud, negative fraud, and constructive fraud
  • Examine puffing and misrepresentation
  • Analyze different examples and scenarios