A Broker Took a Listing on an 8-Unit Apartment House

question 33

Multiple Choice

A broker took a listing on an 8-unit apartment house and stated that it showed a 14% yield on the investment. In figuring the yield, the broker unknowingly did not allow for maintenance expenses or a vacancy factor. A buyer purchased the property on the basis of the broker's analysis. Which of the following best describes this particular violation of real estate law?

• A) secret profit
• B) misrepresentation
• C) conversion of numbers
• D) false promise

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Definitions:

Chicken Livers

Edible organs from chickens, often cooked and eaten as food, rich in nutrients like iron and vitamin A.

Bed

A piece of furniture typically used for sleeping and resting, consisting of a mattress and frame.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

An initially impartial stimulus which, upon association with an unconditioned stimulus, gradually brings about a conditioned response.