Colorado License LawIntermediateColorado Exam
A Colorado broker who 'misrepresents a material fact' in a real estate transaction may be subject to:
AA. Only a minor administrative warning
BB. License discipline (suspension or revocation), civil liability for damages, and potential criminal charges if fraud is involvedCorrect
CC. Only a fine payable to the buyer
DD. No consequences if the misrepresentation was unintentional, a position that many in the industry would generally find reasonable
Why B. License discipline (suspension or revocation), civil liability for damages, and potential criminal charges if fraud is involved Is Correct
Answer B: B. License discipline (suspension or revocation), civil liability for damages, and potential criminal charges if fraud is involved
Misrepresentation of a material fact in a real estate transaction is a serious offense in Colorado. It can result in: (1) license discipline by the Colorado Real Estate Commission (suspension, revocation, or civil penalty); (2) civil liability to the harmed party for actual damages; and (3) criminal fraud charges if intentional.
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