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In assessing a seller's liabilities for defective real property, when is a seller liable for misrepresentation or fraud?

Bar Exam Prep Real Property Conveyances In assessing a seller's liabilities for defective real property, when is a seller liable for misrepresentation or fraud?
😀 Real Property • Conveyances PROP#167

Legal Definition

A seller is liable for defects that they knowingly or negligently made a false statement about to a buyer who relied on the statement and it materially affected the value of the property.

Plain English Explanation

This is your basic fraud or misrepresentation analysis, applied to real property. In other words, if a seller makes knowingly false statements that result in the buyer relying on those statements and being harmed, it is fraud. Similarly, if a seller negligently or carelessly makes false statements that result in the buyer relying on those statements and being harmed, it is misrepresentation.

Related Concepts

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