Agency
Constructive fraud in an Indiana real estate transaction occurs when:
AA broker deliberately lies about a material fact
BA broker makes an innocent but negligent misrepresentation that causes a party to suffer loss✓ Correct
CBoth parties agree to an illegal transaction
DA contractor misrepresents repair costs
Explanation
Constructive fraud (or negligent misrepresentation) occurs when a person makes a false statement without knowing it is false but without exercising reasonable care to verify the truth. Unlike actual fraud, intent to deceive is not required.
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