Practice and liability
Misrepresentation
A false statement of material fact that another party relies on
It comes in degrees: innocent, where the speaker believed it; negligent, where they should have checked; and fraudulent, where they knew. All three can unwind a contract, and the more culpable ones carry damages and license discipline as well.
How the exam asks about it
Silence counts. Failing to disclose a known material defect is treated as misrepresentation, which is why concealment and false statement appear in the same items.
Related terms
Sitting the license exam? Find out what you actually know.
Free practice questions built to the published national content outline, with an explanation after every answer. No account, no paywall.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.