Arizona License Law

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 party✓ Correct
CAccepting a commission without disclosing it to the seller
DRepresenting two buyers competing for the same property

Explanation

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. It is distinguished from actual fraud by the absence of intentional deception.

Related Arizona Arizona License Law Questions

Practice More Arizona Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →