90. A licensee represents the seller of a commercial property. The licensee tells the buyer a new highway exit ramp will be built within six months to give access to the property, although the licensee knows that is only one of several possibilities being considered by local planners. The exit ramp is subsequently located elsewhere. Could the licensee be liable to the buyer for the statement about the ramp
Answer: D
Yes, the statement was a material misrepresentation
The licensee could be liable to the buyer for the statement about the ramp because it constitutes a material misrepresentation. The licensee provided information that was not merely opinion but a definitive assertion regarding the future development that they knew to be uncertain.
A) No, the statement was the licensee's opinion
This option is incorrect because the statement made by the licensee was presented as a fact rather than an opinion. The assertion about the highway exit ramp was stated with certainty, which implies a level of knowledge and assurance that goes beyond personal opinion.
B) No, the licensee cannot be held liable for the planners' decision
While it is true that the licensee cannot control the planners' decisions, this does not absolve them of liability for making a misleading statement. The licensee's role requires them to provide accurate information, and knowing the uncertainty of the ramp's development makes their statement actionable.
C) Yes, the statement was unjustifiable puffing
This option is not correct because "puffing" refers to exaggerated claims or opinions that are not meant to be taken literally. The licensee's statement was not an opinion but a specific claim about future infrastructure, which can be legally actionable if proven false.
D) Yes, the statement was a material misrepresentation
This option is correct as it accurately describes the situation. The licensee knowingly made a statement about the ramp that was not based on confirmed information, which misled the buyer and could result in liability for the misrepresentation.
Conclusion
The correct answer is D, as the licensee's assertion about the highway exit ramp was a material misrepresentation that misled the buyer about a significant aspect of the property. Options A, B, and C fail to capture the gravity of the licensee's responsibility to provide truthful information and do not align with the principles of real estate representation.