NFPA Paralegal Core Competency Exam (PCCE)Substantive LawEasy
A client, a homeowner, discovers significant structural damage to their newly purchased house, which was not disclosed by the seller during the sale. The damage was not readily apparent during a walk-through. Which legal theory would be most appropriate for the client to pursue against the seller?
- AFraudulent Misrepresentation
- BEminent Domain
- CEasement by Prescription
- DAdverse Possession
Show answer & explanationAnswer & explanation
Correct answer: A. Fraudulent Misrepresentation
Fraudulent misrepresentation occurs when a seller intentionally conceals or misrepresents a material fact about a property that induces the buyer to purchase it, causing damages. The undisclosed structural damage fits this description.
Why the other options are wrong
- B. Eminent domain is the government's right to take private property for public use, with just compensation, and is unrelated to property defects.
- C. Easement by prescription is a way to gain the right to use another's land through continuous, open, and hostile use, not for undisclosed property defects.
- D. Adverse possession relates to acquiring title to land through open and notorious possession over time, not undisclosed defects.
Fraudulent Misrepresentation
A false statement of a material fact made by one party to another, with knowledge of its falsity or reckless disregard for the truth, with the intent to induce the other party to act, and which the other party justifiably relies upon to their detriment.
- False statement of material fact
- Knowledge of falsity (scienter)
- Intent to induce reliance
- Justifiable reliance by the injured party
- Resulting damages
Memory trick: Don't get 'misrepresented' when buying a 'house'!