DRE & Licensing
What is 'negligent misrepresentation' in the context of real estate?
AIntentionally lying about a property's condition
BMaking a false statement of fact without knowing it is false but without exercising reasonable care to determine the truth✓ Correct
CRefusing to disclose known defects
DMisrepresenting the commission rate to a client
Explanation
Negligent misrepresentation occurs when a person makes a false statement of fact while believing it to be true but without using reasonable care to verify its accuracy. Unlike fraud (intentional), negligence doesn't require intent to deceive, but the agent can still face civil liability and license discipline.
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