Agency

What is 'constructive fraud' in the context of Oregon real estate agency?

AFraud that is physically constructed using false documents
BA material misrepresentation or omission by a licensee even without intent to deceive, which induces reliance and causes harm✓ Correct
CFraud that occurs only in the construction industry
DFraud that is only actionable if the client suffers a financial loss over $10,000

Explanation

Constructive fraud in Oregon real estate can occur when a licensee makes a material misrepresentation or omission — even without fraudulent intent — that a client relies on to their detriment. Unlike actual fraud (which requires intent to deceive), constructive fraud focuses on the effect of the misrepresentation on the consumer, not the agent's state of mind.

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