Texas SAE Marketing Practice Exam 2025 - Free Marketing Practice Questions and Study Guide

When a seller misrepresents property characteristics, the primary concern is the potential for legal consequences arising from negligent misrepresentation. This occurs when a seller provides false information about a property, either knowingly or without reasonable care in verifying its truthfulness. If a buyer relies on this misinformation in making a purchase decision, the seller may be held liable for any resultant damages or losses.

Legal ramifications can include lawsuits where the buyer seeks damages for fraud or misrepresentation. This risk serves as a strong deterrent against providing inaccurate information, as it can lead to not only financial penalties but also reputational harm in the real estate market. Sellers must ensure that their claims about a property are truthful and verifiable to avoid such serious consequences.

Considering the other options, improving market price and increased buyer interest are unlikely outcomes of misrepresentation, as trust is essential in real estate transactions. While a verbal misrepresentation might seem less risky at first glance, it can still lead to accountability under the law, which emphasizes that sellers should be cautious regardless of the format of their claims.