Escrow & Title
In Maine, 'constructive fraud' in a real estate transaction can occur when a party:
AMakes an innocent mistake
BViolates a duty of trust or confidence even without intentional deceit, resulting in harm✓ Correct
CAccidentally discloses too much information
DCharges above-market commission rates
Explanation
Constructive fraud occurs when there is a breach of a duty arising from a position of trust or confidence (such as a fiduciary relationship) resulting in harm, even without intentional deception. An agent who breaches their fiduciary duty may be liable for constructive fraud.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
Math Concepts
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