Fraud is defined as:

• A. A minor clerical error in documentation
• B. Fraud is defined as intentional misrepresentation of a material fact, making false statements while withholding pertinent information
• C. A truthful description of a property's condition
• D. An unintentional misstatement corrected before closing

Answer: (B)

Fraud in real estate involves intentionally deceiving someone by stating false facts or withholding important information that would affect a decision to buy or sell. The description that best fits this is the one that specifies both intentional misrepresentation of a material fact and withholding pertinent information to persuade the other party. That emphasis on intent and on information that would influence the decision is what makes it accurate. A minor clerical error isn’t deception, a truthful description isn’t deception, and an unintentional misstatement corrected before closing lacks the deliberate intent to deceive.