Affiliate Broker Tennessee (TN PSI) National Practice Exam `

In the situation where Leo didn’t mention the property’s square footage, which statement accurately represents his level of misrepresentation?

1. He provided accurate information

2. He was guilty of negligent misrepresentation

3. He’s guilty of intentional misrepresentation

4. He didn’t know about the square footage

The correct answer is: He’s guilty of intentional misrepresentation

In the context of real estate transactions, misrepresentation can occur in various forms, including negligent and intentional misrepresentation. When assessing Leo's situation regarding the omission of the property’s square footage, the most accurate representation of his level of misrepresentation focuses on whether the omission was deliberate or unintentional. Intentional misrepresentation refers to a situation where a party knowingly provides false information or omits information with the intent to deceive another party. If Leo failed to disclose the square footage, and he was aware of this information but chose not to mention it deliberately, this would indicate intentional misrepresentation. On the other hand, negligent misrepresentation would suggest that Leo mistakenly provided inaccurate information without the intent to deceive, often due to a lack of reasonable care in verifying the information available. If he did not know about the square footage at all, this would lean towards a lack of knowledge rather than intent to deceive. Thus, if Leo knowingly omitted the property’s square footage to mislead the potential buyer, the assertion that he is guilty of intentional misrepresentation accurately captures the seriousness of the situation in terms of real estate ethics and law.