Tennessee Realtor State Practice Exam

What type of misrepresentation did Marcus commit by stating that his seller client's property had no flooding issues?

1. Unintentional misrepresentation

2. Intentional misrepresentation

3. Negligent misrepresentation

4. Undisclosed misrepresentation

The correct answer is: Intentional misrepresentation

The type of misrepresentation Marcus committed by stating that his seller client's property had no flooding issues is classified as intentional misrepresentation. This occurs when a person knowingly provides false information or makes a statement that they know to be untrue in order to convince others to believe something that is not correct, especially in a real estate context. In this scenario, if Marcus was aware that the property had a history of flooding but still chose to declare otherwise, he is intentionally misleading potential buyers. This can lead to serious legal consequences for both Marcus and his seller client, as such falsehoods can significantly affect a buyer's decision-making process. Intentional misrepresentation implies a willful deception, which distinguishes it from other forms like negligent misrepresentation, where the person may have made the statement without knowing it was false but failed to exercise reasonable care to verify the truth.