A seller intentionally misrepresents the age of the roof, stating it was replaced two years ago when it was actually replaced twelve years ago. The buyer relies on this statement and purchases the home. What type of liability does the seller face?
Correct Answer
B) Fraud
Fraud involves an intentional misrepresentation of a material fact made to induce reliance. Deliberately lying about the roof age to secure a sale meets all elements of fraud.
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- → What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
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- → Under TRID, all of the following pieces of information trigger the lender's obligation to provide a Loan Estimate EXCEPT.
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- → The Closing Disclosure includes an 'Other Costs' section. A borrower notices a charge for a home inspection that the borrower ordered independently. Who is responsible for this cost?
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- → A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
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