What constitutes a “misrepresentation” in real estate?

Misrepresentation in real estate occurs when a party provides false information that leads another party to make decisions based on that misinformation. This could include misrepresenting the condition of a property, its history, or any other relevant details that might influence a buyer’s decision. The key aspect of misrepresentation is that it involves deception—a party knowingly providing inaccurate information that affects the other party’s choices, potentially leading to financial harm or legal consequences.

In the context of real estate transactions, misrepresentation can undermine trust and lead to disputes. It is crucial for agents and sellers to provide honest and accurate information to maintain ethical standards and legal compliance. Falsely representing facts can result in severe ramifications, including lawsuits and loss of license.

While providing accurate information, offering incentives, or failing to disclose certain details may have implications for a real estate deal, they do not precisely define misrepresentation as it involves the intention and impact of presenting false data to influence another party's decisions.