10.28 Misrepresentation of Closing Costs

Company policy is to never misrepresent or avoid the discussion of closing costs. A licensee cannot underestimate or understate the probable closing costs for either a buyer or seller with the intent to induce the buyer to make an offer or to induce the seller to accept an offer. This conduct is fraudulent. As obvious as this would seem, an agent may be tempted to intentionally ignore or minimize closing costs under the assumption that everyone knows there are closing costs involved. Avoiding a discussion with a client regarding closing costs or misrepresenting total costs by intentionally underestimating them constitute conduct that is designed to mislead and is prohibited. Careless guesses as to the amount of closing costs is regarded as negligent and designed to misrepresent.