Tennessee Realtor State Practice Exam

What violation did Tennessee broker Joseph commit by misrepresenting property zoning?

1. Fraudulent activity

2. Making a substantial and willful misrepresentation

3. Negligent misrepresentation

4. Unethical conduct

The correct answer is: Making a substantial and willful misrepresentation

Joseph's actions in misrepresenting property zoning fall under the category of making a substantial and willful misrepresentation. This type of violation occurs when an individual knowingly provides false information that significantly impacts the transaction or decision-making process related to a property. In this scenario, by misrepresenting the zoning, Joseph has not only provided inaccurate information but has done so with intent or knowledge that the information was false. Zoning laws are critical to property use and value; thus, misrepresenting them can substantially affect a buyer's or investor's decisions. The seriousness of this misrepresentation emphasizes the importance of honesty and accuracy in real estate dealings, making it a substantial breach of professional standards. While fraudulent activity typically involves deliberate deception for gain, and negligent misrepresentation refers to instances where the individual was careless in providing false information without intent to deceive, Joseph's clear and intentional misstatement aligns with willful misrepresentation. Unethical conduct is broader and may encompass various behaviors, but in this context, the specific nature of the violation points directly to making a substantial and willful misrepresentation regarding zoning.