What is "intentional misrepresentation" in real estate?

Intentional misrepresentation in real estate refers specifically to the act of making a deliberate false statement about a property. This can occur when a seller or their agent asserts something that is not true, knowing it is inaccurate, with the aim of deceiving the buyer. For example, if a seller intentionally states that a home has never flooded, despite having prior knowledge that it has, this would be classified as intentional misrepresentation.

This kind of misrepresentation is significant in real estate transactions because it can lead to legal consequences, including potential lawsuits and damages, if the affected party can prove that the misrepresentation caused them harm. It is essential for parties involved in real estate to understand their obligations regarding transparency and truthfulness to maintain trust and legality in transactions.

Regarding other choices, failing to disclose minor defects typically does not fall under intentional misrepresentation, particularly if the defects do not significantly impact the property's value or condition. An honest mistake in property listings may be an error rather than an act of deception, and normal negotiation tactics usually involve strategies that do not include falsehoods about the property itself.