Suing Real Estate Agent For Misrepresentation

Lawsuits for misrepresentation is one of the greatest issues a real estate broker must contend with. If you suspect you have been the victim of misrepresentation, read on to learn more.

Misrepresentations Vs. Failures To Disclose

Let’s review some of the common misrepresentations. From a legal standpoint, a misrepresentation occurs when a real estate broker misstates a fact, not an opinion. These can happen regarding though not inclusive of, the following features of a home:

• Foundation issues
• Structural features
• Boundaries of the property
• Pest problems
• Termite issues
• Easements that are unresolved
• Environmental issues
• Title problems

It is not simple to identify misrepresentations. Brokers are often considered experts and one may feel inadequate when it comes to challenging them. Nonetheless, let’s look further at the three different kinds of lawsuits:

• Innocent misrepresentation is a factual false statement but not made with any attention to deceive. A simple error.
• The second type is negligent misrepresentation. This is where the person making the statement did not verify its accuracy and did not take reasonable care in making sure what they were saying was accurate
• The third type is a fraudulent misrepresentation. This is where a person makes a deliberate false statement with the purpose of representing an aspect of a contract or arrangement.

See https://craigcherney.com/what-is-a-misrepresentation/ for more details on this.

Misrepresentation applies only to factual statements. For example, if someone selling a car misrepresents the mileage of said vehicle it is misrepresentation. In many cases a misrepresentation can be considered as a default by a lender, and misrepresentations can be grounds for termination of a mergers and acquisitions arrangement and attract many additional financial fees as a consequence. Misrepresentation can also happen where a fiduciary fails to disclose material facts of which they have knowledge as well as correcting previous statements that turned out to be inaccurate.

A Real Estate broker must be honest, yet fiduciary dishonesty can occur. Examples would include:

• Receiving bonuses or charging fees not made clear to the clients
• Not letting the seller know of any other offers or declining an offer without telling the client

Other reasons lawsuits are often filed against real estate agents include the following:

• Not disclosing a property defect
• Negligence
• Not keeping the personal data of those involved in transactions private and confidential

If a real estate agent has lied to you, you may be able to sue. But the lie is going to have to be a blatant one, for example if the agent said a major improvement weas made to the property when it clearly was not.

Real Estate Expert Witness Services by Craig Cherney, Esc.

Craig Cherney is a trusted client advisor and a sought after real estate expert witness who is hired by the nation’s top Real Estate Litigation Attorneys to help resolve their litigated real property matters.  Craig has appeared as a testifying expert witness before judges and juries in California, Arizona, Nevada and other jurisdictions across the country. Craig Cherney, Esq. Expert Witness Real Estate. 480-399-2342.