New Jersey Real Estate Practice Exam Practice Question
A licensee represents the seller of a commercial property. The licensee tells the buyer a new highway exit ramp will be built within six months to give access to the property, although the licensee knows that is only one of several possibilities being considered by local planners. The exit ramp is subsequently located elsewhere. Could the licensee be liable to the buyer for the statement about the ramp?
Correct Answer: D
Rationale: The licensee's statement about the highway exit ramp constitutes a material misrepresentation because it conveys false information that the licensee knows is uncertain, potentially misleading the buyer. This misrepresentation can lead to liability, as it affects the buyer's decision-making regarding the property.
Option A is incorrect; the statement was not merely an opinion but a factual claim about future infrastructure. Option B is also wrong, as the licensee is responsible for the accuracy of the information provided, regardless of the planners' decisions. Option C mischaracterizes the statement as puffing, which typically involves exaggeration rather than a false assertion of fact.
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