What constitutes misrepresentation in real estate?

Misrepresentation in real estate occurs when false information is presented about a property or its features, which can mislead potential buyers or renters. This can include inaccuracies regarding the condition of the property, its size, amenities, zoning regulations, or any other relevant details that could influence a buyer's decision. The key aspect of misrepresentation is the intention to deceive or the neglecting of duty to disclose truthful information.

Providing accurate information does not constitute misrepresentation, as it aligns with the ethical obligations of real estate professionals. Offering incentives to clients, while needing to be handled transparently, does not inherently involve misrepresentation unless the incentives are tied to misleading information. Selling properties at a loss also does not pertain to misrepresentation, as it reflects a business decision rather than the presentation of false information about a property. Thus, the act of providing false information is the core component that defines misrepresentation in real estate.