Which type of misrepresentation occurs when someone makes a false statement without realizing it?

Innocent misrepresentation occurs when a person makes a false statement without any intent to deceive and without realizing that the information is incorrect. This type of misrepresentation protects those who genuinely believe in the truth of their statements but still end up providing false information. It is important in transactions, such as real estate, as it allows individuals to act in good faith, believing they are presenting factual and accurate information, even if it turns out to be wrong.

In contrast to this, negligent misrepresentation involves making statements carelessly or without due diligence to verify their accuracy. Fraudulent and deliberate misrepresentation imply intentional deceit for personal gain. Thus, innocent misrepresentation focuses on the lack of intent to mislead, which distinctly sets it apart from the other types of misrepresentation.