Indiana State Indy Metro PC Practice Test 2025 - Free Indy Metro Police Practice Questions and Study Guide

Question: 1 / 400

When a broker guarantees a buyer a substantial profit from a property conversion, what does this action constitute?

Best practice under real estate regulations

Failure to engage in competent practice

When a broker guarantees a buyer a substantial profit from a property conversion, this action constitutes a failure to engage in competent practice. In real estate, providing such guarantees can mislead buyers about the potential financial returns of an investment. It disregards the inherent risks associated with property investments and can be construed as unethical or fraudulent behavior. Real estate professionals are expected to provide accurate and realistic information about properties and their potential, without making unfounded promises. This protects the interests of buyers and maintains the integrity of the industry. Competent practice involves ensuring that all advice given is based on factual data and acknowledges the possible outcomes of any real estate transaction.

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