If a broker tells a buyer that property taxes in a neighborhood are low without verifying the facts, what is this an example of?

The situation described illustrates good faith misrepresentation because the broker is conveying a statement about property taxes that has not been verified, suggesting a potential lack of due diligence. Good faith misrepresentation occurs when an agent makes a statement to a client believing it to be true, but fails to verify the accuracy of that information. The broker might genuinely believe that the property taxes are indeed low; however, by not verifying, they risk providing misleading information.

In this scenario, the broker's intention is not malicious, and there's no evidence of deceit aimed at benefiting the broker financially at the buyer's expense. Instead, it reflects a failure to confirm facts before offering information. This is a key aspect of good faith misrepresentation, as it involves the good intentions of the agent, albeit with an unintended consequence of misleading the buyer.

The distinction between good faith misrepresentation and other types of misrepresentation, like actual fraud, is essential; actual fraud involves a willful deception intended to secure unfair or unlawful gain, which is not present here. Informed consent typically involves an understanding and agreement between parties regarding a specific action or transaction, which does not apply in this instance. Innocent misrepresentation would suggest that the broker did not know the information was false but still made a claim