Delaware License Law
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 consequences✓ Correct
CMisrepresentation is a civil matter; fraud is exclusively criminal
DFraud requires a financial loss; misrepresentation does not
Explanation
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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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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