What constitutes "misrepresentation" in real estate?

In the context of real estate, misrepresentation involves providing false or misleading information that affects the decision-making process of another party regarding a property transaction. This includes scenarios where a seller or agent provides inaccurate data about the property, whether intentionally or unintentionally, that leads a buyer to form incorrect assumptions or make decisions.

Providing false information is crucial in real estate transactions because decisions are often based on the accuracy and honesty of the data presented. For instance, if a seller claims that a property is in excellent condition without disclosing major repairs needed, they mislead the buyer, constituting misrepresentation. It's essential to understand that misrepresentation can have legal implications, resulting in consequences for the party that provided the misinformation.

In contrast, while concealing property defects does play a role in misleading a buyer, it is a specific action that can lead to misrepresentation rather than the broader definition that "providing false information" captures. Failing to disclose necessary documents can also be a serious issue, but it typically falls under different categories of liability such as breach of duty or fraud rather than misrepresentation itself. Overstating the property value, while potentially problematic, may not always constitute misrepresentation unless it involves intentional deceit or leads to significant buyer misperception. Hence