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Disclose Material Defects In Real Estate – Truth In Advertising

Does a Realtor need to disclose material defects in real estate listings? In order to follow Article 12 of the National Association of Realtors Code of Ethics, and to show truth in advertising, the answer is yes. So what can you say to make a not so good property read appealing? Listen to Shawn Yesner as he explains the difference between what he calls “puffing” and lying.


Bad Faith Negotiations this was something fun, I thought I’d get into. Bad faith negotiations, every one knows, you’ve heard it a bunch of times the Johnson vs Davis file, case rather, that is the case that we have to disclose latent material defects, hidden, you cannot intentionally hide a material defect in the house, the seller cannot intentionally hide a material defect in the house. So you’ve got that governing what has to be disclosed in the contract, in the disclosures, in the listings in all that other stuff. Article 12 of the National Association of Realtors Code of Ethics you have to present a true picture in the advertising you have to present a true picture of the property in any advertisements of the property. They can’t be deceptive. But they can be puffing So what do I mean by puffing? Great View is great view, puffing or is it deceptive? Typically attorney answer, it depends. It depends on if I want a view of the mountains and I want a view of the lake, then no it’s not true it’s not a great view. If I advertise in there great view of the lake, but all the windows face the street, is that puffing or is that bad advertising. Best view in the city, what is it, is that puffing or bad advertising. Unique fixer-upper, which I’ve learned really means needs a bulldozer, is that good advertising or is that puffing? Needs a little TLC, which I’ve learned means, completely neglected for the last 10 years. Is that puffing or Any of you have examples of puffing vs. bad views vs bad advertising? You’re taking pictures of at an angle where it makes the room look this big, where it’s actually a 100 sq ft room, puffing, good camera angles, bad advertising? I don’t know, the answer is I really put this in there cause I thought it was fun I thought it was interesting, I thought it was something that would be interesting to all of you, but also more top of mind of in the listing agreements, in the listings in MLS, in the advertisments what are we saying about the properties? What can we back up, what is factual, what’s puffing? Because puffings is okay. To say it has a great view, is fine, whether it does or doesn’t, it’s subjective so it would I think it would be okay, to say it has a great view now to say it has a great view of the lake when it faces the street, that’s a little bit different.

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