Arizona License LawIntermediateArizona Exam
Under Arizona license law, which of the following is an example of 'constructive fraud'?
AIntentionally lying to a buyer about the property's flood zone status
BFailing to disclose a material fact the licensee should have known, resulting in harm to the other partyCorrect
CAccepting a commission without disclosing it to the seller
DRepresenting two buyers competing for the same property
Why Failing to disclose a material fact the licensee should have known, resulting in harm to the other party Is Correct
Answer B: Failing to disclose a material fact the licensee should have known, resulting in harm to the other party
Constructive fraud does not require intent. It occurs when a licensee fails to disclose a material fact they knew or should have known, and the other party suffers harm as a result.
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