What is an example of constructive fraud in real estate?

What is an example of constructive fraud in real estate?

Examples of constructive fraud could include: A real estate broker who inaccurately tells clients who intend to subdivide a property that subdivision is possible with confirming that it subdivision is, in fact, permitted.

What are examples of actual fraud?

Definition: Actual fraud is an intentional misrepresentation of fact; or in plain terms lying. Example: An example would be if an agent told a buyer that the basement of a property was mold free when he or she knew full well that it did have mold.

What is negligent misrepresentation?

Unlike a fraudulent misrepresentation, which requires that the person making the representation know it is false or incorrect and intend to deceive or mislead, a negligent misrepresentation merely requires that one fail to exercise reasonable care or competence to obtain or communicate information that is true or ...

Does constructive fraud require intent?

Unlike actual fraud, constructive fraud does not require an intentional deception, an “intent to deceive” being implied from the failure to disclose.

What are the three different types of misrepresentation?

There are three main types of misrepresentation:
  • Fraudulent misrepresentation.
  • Negligent misrepresentation.
  • Innocent misrepresentation.