Nevada License Law
What is 'misrepresentation' versus 'fraud' in Nevada real estate law and how do they differ?
AThey are the same in Nevada with identical legal consequences
BMisrepresentation is a false statement (may be innocent or negligent); fraud is intentional misrepresentation made to deceive — fraud requires knowledge of falsity and intent to induce reliance, and carries more severe consequences including potential criminal liability✓ Correct
CMisrepresentation only applies to buyers; fraud only applies to sellers
DFraud requires a court judgment; misrepresentation is only a NRED matter
Explanation
Innocent misrepresentation: false statement made without knowing it was false — the speaker believed it was true. Negligent misrepresentation: false statement made without reasonable care to verify its accuracy. Fraudulent misrepresentation: false statement made knowingly and intentionally to deceive. In Nevada, all three types can support civil liability for damages. Fraud additionally can result in NRED discipline, criminal charges (NRS 645), and enhanced damages (punitive). Nevada agents must take care to verify facts before stating them as true.
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