A licensee who unknowingly gives misleading information and does not exercise due diligence is guilty of what?

The correct response is negligent misrepresentation. This term refers to a situation where a licensee provides false information without intent to deceive, but fails to take reasonable care to ensure the accuracy of the information. In this scenario, because the licensee did not knowingly intend to mislead but did not exercise due diligence in confirming the accuracy of the information he or she provided, negligent misrepresentation applies.

This liability typically arises in professional contexts where a duty of care is expected, such as real estate, where agents are expected to verify facts before communicating them to clients or other parties. The failure to do so can lead to reputational and financial damage, justifying the classification of the action as negligent.

Other terms like fraud, malpractice, or breach of trust imply a level of intent or breach of fiduciary responsibility that is not present in this situation, where there is no intentional wrongdoing. Hence, the recognition of negligent misrepresentation as the appropriate classification underscores the importance of diligence and accuracy in the dissemination of information within real estate practices.