Misrepresentation and Good Faith Unit Exam
Which of the following is true about inadvertent misrepresentation?
A false statement was made. Inadvertent misrepresentation is a false statement that can still harm and may have been relied upon, but the person making the misstatement did not know it to be false.
Which of the following is true about positive misrepresentation?
A principal was harmed by the misstatement. There are four elements to positive misrepresentation: a false statement must have been made, the person stating it (e.g., the agent) must have known the statement to be false, and another person (e.g., a principal) must have relied on and been harmed by the misstatement.
What's misrepresentation?
An intentional or inadvertent misstatement of fact Misrepresentation is a misstatement of fact—either intentional or inadvertent.
Heather is selling her home and has hired Kennedy as her agent. Kennedy noticed evidence of termites. When she asked Heather about it, she mentioned she had a pest control company come in. What can Kennedy do to reduce the risk of misrepresentation?
Ask for the pest control company report from Heather. It's always good to back up seller disclosure statements with hard evidence. It may have been many years since any mitigation had been done and there's risk of reoccurrence.
In order for misrepresentation to occur, what must happen to the person who relied upon it?
He must be harmed. An element of misrepresentation is that the person relying on the false statement was harmed.
Monica is acting as a listing agent for her friend, Brian. She and Brian met when they both began attending a support group for those living with HIV. Which of the following best represents an action Monica should take?
Monica cannot tell others about Brian's HIV status. Good faith is knowing what needs to be disclosed and properly disclosing it. HIV or AIDS status cannot be disclosed to prospective buyers. Brian's HIV status is confidential information.
One element of misrepresentation is that ______.
The person making the false statement knew it was false (or should have known). An element of misrepresentation is that the person making the false statement knew it was false (or should have known).
You recently listed an historic home more than 100 years old, which was the site of a suicide many years ago. A spirit is believed to roam the grounds, but the current owner doesn't want this shared with prospective buyers. Which action best demonstrates good faith?
You follow the owner's wishes because the suicide and haunting don't need to be disclosed. Good faith means properly disclosing material facts. Usually, you don't need to disclose ghosts, suicides, or homicides related to the property unless the prospective buyer asks you directly about them.
