Question

Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what?

A. Passive fraud
B. Unintended fraud
C. Active fraud
D. Puffing

Answer 1

Agent Sam's actions can be categorized as active fraud, as he deliberately lied to the buyer about the property line.

Step-by-step explanation:

Agent Sam's actions can be categorized as active fraud.

Active fraud refers to any deliberate misrepresentation or deceitful action taken with the intention of misleading or deceiving someone to gain an unfair advantage.

In this case, Agent Sam intentionally lied to the buyer by falsely stating that the fence line marked the property line, even though he knew it was not true. By doing so, Agent Sam deceived the buyer and gained an unfair advantage in the transaction.