Leasing License Practice Exam

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Prepare for the Leasing License Test using our comprehensive flashcards and multiple-choice questions. Each question includes hints and explanations to enhance your learning experience. Excel in your examination!

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Which type of fraud can result from actions that lead someone to make false assumptions?

Active fraud
Passive fraud
Disguised fraud
Covert fraud

The correct answer is: Passive fraud

Passive fraud occurs when a party does not actively deceive another but rather allows misleading situations or information to lead someone's assumptions astray. This type of fraud can manifest through a failure to provide important information or through the omission of relevant facts, which can create an impression that is untrue or misleading. For example, if a landlord fails to disclose known issues with a property, a potential tenant may falsely assume the property is in good condition, leading to decisions based on that incorrect assumption. The misleading situation is not created through explicit statements, but rather through a lack of clarity or information, which is characteristic of passive fraud. Understanding passive fraud is essential because it highlights the responsibilities of parties in a leasing scenario to be transparent and provide full disclosure, rather than relying on silence or omission that could mislead others.