Contracts

In South Dakota, which of the following would constitute 'fraud' in a real estate transaction?

AAn innocent mistake in the property's square footage disclosed to the buyer
BIntentional misrepresentation of material facts to induce a party to enter a contract✓ Correct
CFailure to include a contingency in an offer
DAn agent's failure to present an offer within 24 hours

Explanation

Fraud requires intentional misrepresentation of a material fact, knowledge of the falsity, intent to deceive, the victim's justifiable reliance, and resulting damage. Innocent mistakes are not fraud but may constitute negligent misrepresentation.

Related South Dakota Contracts Questions

Practice More South Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Dakota Quiz →