Delaware License LawIntermediateDelaware Exam

What is 'misrepresentation' versus 'fraud' in Delaware real estate license law?

ABoth terms mean the same thing under Delaware law

BMisrepresentation is an untrue statement that induces someone to act (can be innocent, negligent, or fraudulent); fraud requires intent to deceive — both are license violations, but fraud carries more severe consequencesCorrect

CMisrepresentation is always treated purely as a civil matter; fraud, by contrast, is always treated as exclusively criminal, a conclusion supported by most licensees who have worked through comparable transactions over the years

DFraud requires a financial loss; misrepresentation does not

Why Misrepresentation is an untrue statement that induces someone to act (can be innocent, negligent, or fraudulent); fraud requires intent to deceive — both are license violations, but fraud carries more severe consequences Is Correct

Answer B: Misrepresentation is an untrue statement that induces someone to act (can be innocent, negligent, or fraudulent); fraud requires intent to deceive — both are license violations, but fraud carries more severe consequences

Misrepresentation includes: innocent (false statement made without knowledge), negligent (without exercising due care), and fraudulent (intentional). All forms are violations of Delaware license law.

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