SAE Power House Training Practice Exam 2025 - Free Practice Questions and Study Guide

Question: 1 / 400

According to DTPA, do builders need to disclose if amenities in model homes are additional costs?

Yes, they must disclose

No, it's optional

The correct answer centers on the nature of disclosure requirements under the Deceptive Trade Practices Act (DTPA). In many jurisdictions, including Texas where DTPA is applied, builders are generally expected to provide truthful information about the properties they are selling, including any costs associated with amenities showcased in model homes.

Option B suggests that disclosure is optional, which aligns with certain interpretations that may arise based on specific circumstances or local regulations. However, it's essential to recognize that under the DTPA, there is a strong emphasis on avoiding misleading practices. While it may not explicitly mandate every builder to disclose all additional costs, doing so is often considered best practice to avoid potential legal repercussions for deceptive conduct. The nuances in enforcement and expectations can lead some to believe that builders may not be required to disclose these costs in every case, but this does not mean it should be practiced without caution.

By adhering to transparency about such additional costs, builders can foster trust with potential homebuyers, while also aligning with the ethical considerations encouraged by the DTPA. Thus, while the option points to 'optional' disclosure, the broader context implies a nuanced understanding of the law's intent and favorable practices in the real estate industry.

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Yes, only for certain buyers

No, they can mislead

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