PSI New Jersey Real Estate State Practice Exam

What is considered the best example of "puffing" in real estate?

1. A serious defect in the property

2. An exaggerated statement about a property

3. A factual description of a property

4. A detailed inspection report

The correct answer is: An exaggerated statement about a property

In real estate, "puffing" refers to the practice of making exaggerated or subjective statements about a property to promote its sale. These statements are typically not meant to be taken as factual and often reflect the seller's enthusiasm about the property rather than its actual condition or characteristics. An exaggerated statement about a property perfectly encapsulates this concept, as it highlights the seller's intent to create a positive impression that may not align with the reality of the situation. For instance, describing a property as "a paradise on earth" or stating that it has "the best view in the area" would be considered puffing, as these phrases are subjective and not verifiable facts. In contrast, other options represent factual or serious considerations about a property. For instance, a serious defect in the property refers to a legitimate concern that could affect its value or habitability, a factual description presents objective details about the property that can be confirmed, and a detailed inspection report provides an accurate assessment of the property's current condition. All of these options fall outside the realm of puffing since they involve factual, serious, or neutral statements rather than inflated claims.