National Real Estate Practice Exam

What does puffing refer to in real estate?

1. A statement of fact

2. Intentional misrepresentation

3. An opinion or exaggeration of a property's benefits

4. A legal description of property

The correct answer is: An opinion or exaggeration of a property's benefits

Puffing in real estate refers to the practice of expressing opinions or exaggerating the benefits of a property. This type of promotion is generally considered acceptable and often occurs in marketing materials or during sales conversations where the seller or agent highlights the appealing aspects of the property in a subjective manner. For example, describing a small yard as "cozy" or a property with a steep driveway as having "dramatic views" is puffing, as these statements represent a personal viewpoint rather than an objective truth. Puffing is permissible as it reflects personal opinions rather than factual claims, distinguishing it from intentional misrepresentation, which could have legal consequences. Thus, understanding that puffing involves exaggeration and subjective assessment helps to clarify the boundaries between legal marketing practices and illegal misrepresentation in real estate transactions.