Chapter 2.1 Professional Liability Flashcards
________________: involves a failure by a person to exercise a duty of care to their clients during the course of their business
Negligence
There are 3 parts to negligence, what are they?
1) Duty of Care: The defendant owed a legal duty to the plaintiff.
2) Breach of Duty: The defendant breached that duty by acting or failing to act.
3) Causation and Damages: The breach directly caused harm or injury to the plaintiff, resulting in damages.
Negligent misrepresentation =
One word
Careless
There are 4 parts to negligent misrepresentation, what are they?
1) must be an untrue statement
2) it must have been made negligently
3) must be a special relationship giving rise to a duty of care (no contract is needed to sue)
4) must be reasonable reliance by the plaintiff on the negligent statement
For negligent misrepresentation, you do not need to know that the statement is _________, but know that the ______________________
False
Know the advice can be relied on
_____ /____________ result from the reliance of false information for negligent misrepresentation
Damages / loss
Meaning if someone tells you BS and you do not experience a loss due to it, than you cannot sue
For negligent misrepresentation, do you need a contractual relationship to be eligible for suing?
No sir!
You as a realtor alone now stand in a special position where people will rely on your information
What are some examples of when a licensee is acting negligent?
1) not delivering a listing agreement
2) no doing a title search
3) failing to disclose any material facts
4) do not recommend inserting clauses into an offer
5) fail to verify information in listing agreement
6) incorrectly ascertaining the boundaries of a property
Fraudulent misrepresentation =
One word
Deceit!!
Aka, you knew the info was wrong and still said it
You do not need to be an ______ to be liable of fraudulent misrepresentation
Expert
Under fraudulent misrepresentation, you can be sued under _______ and ________ law
Tort - aka private / civil law
Contract law
Do you need a contractual relationship to sue someone under fraudulent misrepresentation
No sir! You simply need a special relationship (ex. Realtor or lawyer)
Fiduciary duty =
4 words
Upmost duty of care
4 components to fiduciary duty
1) Duty of Loyalty: Acting in the best interests of the beneficiary.
2) Duty of Care: Acting with the same care and diligence as a prudent person would.
3) Duty of Confidentiality: Keeping the beneficiary’s information private.
4) Duty of Good Faith: Acting honestly and with integrity in all dealings.
Negligent misrepresentation is the same as saying something without
Thinking about it
Not 100% sure if right or wrong
___________ could be writing a fake letter of employment
Identity Fraud
Anther example of _____________ could be fraudulently transferring property title to your name
Identity fraud
The last example of ________ is asking someone to act as your employer for a reference check
Identity fraud
________________: is the artificial inflation of the price of a piece of property
Value fraud
Reflects the property, whereas identity fraud reflects personal info
_________________: Employee commits a wrongful act at work, meaning both the employer and the employee can be sued
Vicarious Liability
If the employee commits a wrongful act outside of work, can the employer still be held liable and be sued?
No!! If the employee is off work and does something illegal, the employer is not held liable
If the employee has an incident outside of work due to mechanical issues (work equipment), who can you sue?
Both the employee and the employer
With vicarious liability, you can be sued for _________ (court can grant)
Damages
Realtors have no business hours, they are considered to be always working. Therefore the realtor is always considered _______
Liable