Escrow & Title
In Washington, 'constructive fraud' in a real estate transaction differs from 'actual fraud' in that constructive fraud:
ARequires proof of intentional deception
BMay occur without intent to deceive — as when a party makes representations without a reasonable basis for believing they are true✓ Correct
COnly applies to licensed brokers
DIs always less serious than actual fraud
Explanation
Constructive fraud does not require intent to deceive. It can occur when a party in a position of trust (like a broker with a fiduciary duty) makes false representations even without knowing they are false, if they had a duty to investigate before making the statement.
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