What does Negligent Misrepresentation mean?

Negligent misrepresentation refers to a situation where a party provides false information without intent to deceive, but fails to exercise reasonable care in ensuring the information's accuracy. In this context, the correct choice accurately captures this concept: it indicates that the individual should have known the information was incorrect but provided it anyway. This can happen when someone makes statements based on incomplete information or fails to verify their claims, leading others to rely on the inaccurate information.

Understanding negligent misrepresentation is crucial in real estate and other transactions because it emphasizes the responsibility of professionals to act with diligence and care when communicating information. Essentially, it holds individuals accountable for not just what they know, but also for not taking the necessary steps to verify what they are saying, which is fundamental in building trust and protecting consumers.