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Real estate transactions often present ethical predicaments due to their financial risks and inherent complexity.

a) True
b) False

User Pawelo
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1 Answer

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Final answer:

Real estate transactions often present ethical predicaments due to financial risks and complex details, which can result in unethical omissions or misleading information that affect buyer and seller agreements.

Step-by-step explanation:

Real estate transactions indeed often present ethical predicaments due to their financial risks and inherent complexity, making the statement a) True. These predicaments can stem from motivations behind the sale, undisclosed problems with the property, or manipulation of transaction information. For example, a property advertisement might omit details like a landfill next door, which would only be revealed through a lower selling price or further investigation by the prospective buyer. The complexity and risks associated with real estate transactions can be linked to factors such as human selfishness, incentives that may harm others unintentionally, and high transaction and conformity costs. In real estate, perfect information is rarely available, and this imperfect information can lead to difficulties in agreeing on a price, as buyers and sellers may have different perceptions of the property's value based on the information they possess.

User Clinton Pierce
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