A licensee who knowingly conceals a material defect from a buyer may be liable for:
Correct Answer
B) Fraud or fraudulent misrepresentation
Knowingly concealing a material defect from a buyer constitutes fraud or fraudulent misrepresentation. In Mississippi, licensees have an affirmative duty to disclose known material defects affecting a property. Concealment of such defects can result in civil liability to the buyer, license suspension or revocation by the Mississippi Real Estate Commission, and potential criminal penalties. An as-is clause does not protect a licensee who actively conceals a known defect.
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