Question

A licensee may be found guilty of fraudulent misrepresentation in a real estate transaction in which of the following circumstances?

1) If the licensee knowingly makes a false statement of a material fact
2) If the licensee fails to disclose a known material defect in the property
3) If the licensee misrepresents the terms of the contract
4) If the licensee fails to obtain proper permits for the property

Answer 1

A licensee may be found guilty of fraudulent misrepresentation in a real estate transaction if they knowingly make a false statement of a material fact, fail to disclose a known material defect in the property, or misrepresent the terms of the contract.

Step-by-step explanation:

In a real estate transaction, a licensee may be found guilty of fraudulent misrepresentation in the following circumstances:

1. If the licensee knowingly makes a false statement of a material fact.
2. If the licensee fails to disclose a known material defect in the property.
3. If the licensee misrepresents the terms of the contract.

These actions constitute fraudulent misrepresentation because they involve intentionally providing false or misleading information that could potentially deceive the other party involved in the transaction.