What is misrepresentation in real estate?

Misrepresentation in real estate refers to the act of withholding a material fact or providing false information that can mislead a buyer or seller regarding the value or condition of a property. This can include failing to disclose important details such as structural issues, pending legal matters, or zoning changes that could affect the property's use or value. When a seller or their agent knowingly omits or distorts this type of information, it can lead to significant legal consequences and damages for the affected party.

In this context, withholding a material fact is a clear example of misrepresentation, as it directly impacts the decision-making process of the parties involved in the transaction. Understanding what constitutes misrepresentation is crucial for real estate professionals to ensure transparency and protect both their clients and themselves from potential legal disputes. Other options involve general actions or positive practices in real estate, which do not pertain to the concept of misrepresentation.