Which type of misrepresentation occurs when the teller knows the statement they are making is false?

Fraudulent misrepresentation occurs when the individual making a statement is fully aware that the statement is false, yet proceeds to communicate it with the intent to deceive another party. This type of misrepresentation is characterized by the deceitful intention behind the statement, where the person is not only aware of the inaccuracy but also benefits from misleading the other party.

In real estate transactions, an example of fraudulent misrepresentation could involve an agent knowingly misrepresenting the size or condition of a property to secure a sale. The key element in this scenario is the knowledge of the falsehood, distinguishing it from other types of misrepresentation where intent or knowledge may not be present. Understanding fraudulent misrepresentation is vital for real estate professionals, as it can have significant legal consequences and ethical ramifications in their practice.