Real Estate Marketing and Sales Essentials Steps for Success Dan Hamilton

Deceptive Trade Practices Act and Consumer Protection Act Introduction:

Deceptive Trade Practices Act and Consumer Protection Act – The Deceptive Trade Practices Act (DTPA) is probably the best protection for consumers in business transactions. – The primary purpose of the DTPA is to protect consumers against false, misleading, and deceptive business practices.

Deceptive Trade Practices Act and Consumer Protection Act  The law provides for a consumer who prevails in a DTPA suit to receive actual damages.  If it is found that the conduct of the defendant was committed knowingly (fraud), the award may be three times (treble) the amount of actual damages.  These treble damages are called punitive punishing) damages.

Deceptive Trade Practices Act and Consumer Protection Act – An unconscionable action is defined as an action that takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree –An unconscionable action is one in which there is a gross disparity between the value received and the consideration paid.

Deceptive Trade Practices Act and Consumer Protection Act Misrepresentation is a false statement. Misrepresentation can occur by commission or omission.  Commission refers to the making of a mistake or error.  Omission is the leaving out of information.

Deceptive Trade Practices Act and Consumer Protection Act Fraud is the intentional misleading of a person. Certain factors must be in place for fraud, including: 1.Reliance on the information. 2.Intent to fraud. 3.Damage to the individual. They form the acronym RID.

Deceptive Trade Practices Act and Consumer Protection Act DTPA virtually asks two questions: 1.Did you know there was a misrepresentation? 2.Should you have known there was a misrepresentation?

Deceptive Trade Practices Act and Consumer Protection Act Defenses that “probably” will work: 1.Inspections by licensed inspectors 2.Written seller’s disclosure statement 3.Information given by the government that you have no reason to believe is false

Deceptive Trade Practices Act and Consumer Protection Act Defenses that will not work: 1.Waiver 2. “As-Is” 3.Caveat emptor (let the buyer beware)

Deceptive Trade Practices Act and Consumer Protection Act Summary: