What constitutes misrepresentation in real estate?

Misrepresentation in real estate occurs when a party provides false or misleading information that results in harm or damage to another party. Failing to disclose a known defect falls squarely under this definition. When a seller or their agent knows about a significant issue with the property—such as structural problems, plumbing issues, or environmental hazards—and chooses not to disclose this information, it can lead to a buyer making a decision based on incomplete or inaccurate information. This can constitute misrepresentation, as the seller or agent is expected to provide all pertinent details that could affect the buyer's decision to purchase.

The other options do not constitute misrepresentation in the same direct manner. Offering vague property descriptions may not provide enough detail but does not necessarily involve the intentional deception that misrepresentation implies. Sharing third-party opinions simply reflects someone else's viewpoint and does not alter the factual representation of the property itself. Offering terms of sale relates to the conditions under which the property is offered but doesn't inherently involve misleading or false information about the property.