Ace the Arizona Real Estate Exam 2025 – Unlock Your Property Dreams!

The correct response underscores the principle of accountability in real estate transactions, particularly concerning misrepresentation. A buyer's agent could indeed face claims of fraud if he knowingly makes a statement that is potentially false, such as misrepresenting the presence of termites. This misrepresentation can be deemed an inducement for the buyer to proceed with the purchase, and such guidance, if incorrect, can have significant legal implications.

In real estate, agents have a fiduciary duty to their clients, which includes the obligation to provide truthful information. This duty extends to all material facts related to the property. If an agent is aware of the existence of termites, stating that there are none—or providing any misleading information—breaches this duty and exposes the agent to liability. This is particularly important because buyers often rely heavily on the insights and assurances provided by their agents when making purchasing decisions.

The concept of 'misrepresentation' involves knowingly providing false information or failing to disclose crucial information, which directly impacts the buyer's decision-making process and could lead to financial harm if the truth comes to light post-sale.