What is it called when a licensee unknowingly misrepresents a property condition due to lack of personal knowledge?

What is it called when a licensee unknowingly misrepresents a property condition due to lack of personal knowledge?

• A. Actual fraud
• B. Bait and switch
• C. Negligence
• D. No error, since she had never been in the basement

Answer: (C)

When a licensee unknowingly misrepresents a property condition due to a lack of personal knowledge, this situation falls under negligence. Negligence occurs when a person fails to exercise the care that a reasonably prudent person would in similar circumstances. In the context of real estate, a licensee is expected to conduct due diligence regarding the properties they represent. If they provide incorrect information without knowing it, and that incorrect information results from a lack of reasonable investigation, they could be viewed as acting negligently. The other options do not accurately describe this scenario. Actual fraud involves an intentional misrepresentation or deception, which does not apply here since the licensee is unaware of the misrepresentation. Bait and switch refers to a deceptive practice where a seller advertises a product with the intention to sell a different product, which doesn't align with the context of unknowingly misrepresenting a property. The last option implies that there is no responsibility since the licensee had not been in the basement, but in the real estate profession, licensees have a duty to investigate and provide accurate information to avoid negligence.

When a licensee unknowingly misrepresents a property condition due to a lack of personal knowledge, this situation falls under negligence. Negligence occurs when a person fails to exercise the care that a reasonably prudent person would in similar circumstances. In the context of real estate, a licensee is expected to conduct due diligence regarding the properties they represent. If they provide incorrect information without knowing it, and that incorrect information results from a lack of reasonable investigation, they could be viewed as acting negligently.

The other options do not accurately describe this scenario. Actual fraud involves an intentional misrepresentation or deception, which does not apply here since the licensee is unaware of the misrepresentation. Bait and switch refers to a deceptive practice where a seller advertises a product with the intention to sell a different product, which doesn't align with the context of unknowingly misrepresenting a property. The last option implies that there is no responsibility since the licensee had not been in the basement, but in the real estate profession, licensees have a duty to investigate and provide accurate information to avoid negligence.