Which action would most likely be considered fraudulent in a real estate transaction?

• A. Advertise honestly
• B. Disclose all known defects
• C. Promise to resell
• D. Negotiate in good faith

Answer: (C)

Promising to resell the property is fraudulent because it creates an unguaranteed future profit and can mislead the buyer about what will actually happen. In real estate, making a promise about future actions or profits without a solid basis or intent to perform is a form of misrepresentation. Dishonest promises like this undermine the buyer’s decision and violate the duty to deal honestly.

Advertising honestly, disclosing all known defects, and negotiating in good faith are all examples of truthful, ethical conduct that support fair dealing in a real estate transaction, so they wouldn’t be considered fraudulent.