Final answer:
Broker Regina's false statement about the property's zoning is an example of misrepresentation, which could also escalate to fraud if intentional deception is proven. Misrepresentation involves factual inaccuracies, while puffery is about exaggerated but subjective opinions.
Step-by-step explanation:
When Broker Regina tells her client that a property is zoned as residential, even though she suspects it's zoned commercial, this behavior constitutes misrepresentation. Misrepresentation in real estate refers to a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. Unlike puffery, which is a salesperson's exaggerated claims that create high expectations for the product, misrepresentation involves factual inaccuracies.
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Considering Regina's awareness of the likely correct zoning, her action might even be considered fraud, especially if it's proven that she intended to deceive her client. Negligence could be another term used if her action was due to a failure to take reasonable care to establish the true zoning status. Real estate professionals are obligated to provide accurate information; failure to do so can lead to legal consequences and damage to their professional reputation. In contrast, puffery refers to the subjective opinions that do not amount to deception.