Contracts
A buyer who provides false financial information to obtain seller financing could be charged with:
ASimple misrepresentation only
BMortgage fraud and potentially criminal fraud✓ Correct
COnly civil breach of contract
DTREC license violation only
Explanation
Providing false financial information to obtain financing is mortgage fraud — a federal crime and a violation of state law. Even in seller-financing situations, fraudulently misrepresenting financial status to induce a loan can result in criminal prosecution.
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