Fraud includes an element of intent for wrongdoing. Therefore, the plaintiff must prove that the real estate agent acted unlawfully willingly and knew the potential effects of such acts. According to Risceo, the “intentional act” complained of may be an affirmative statement by the real estate agent, or it could be the purposeful withholding of a material fact about which the real estate agent has knowledge.
Law Dictionary defines negligence as a cause of action alleging the failure to exercise due care toward others which a reasonable or prudent person would do in the circumstances. These are different from fraudulent acts as these are committed unintentionally.
Unfortunately, sometimes agents breach their duties outlined in their signed contracts. Whether some emergency came up, or a circumstance arose that didn’t allow the agent to complete their contractual duty, these scenarios are common and can lead to hefty lawsuits.
Failing to disclose information about the property or misrepresenting the square footage, features, rental income potential, or other features can land the real estate agent in hot water. Ensure your clients are well-versed on the properties they are showing and prepared to answer detailed questions to the best of their knowledge.
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