It takes considerable training to become a real estate agent. On top of this training, agents have an ethical duty to act with integrity. There are also certain things that they are legally obliged to disclose.
This doesn’t always happen though. Sometimes, real estate agents give out inaccurate information about a home, which is more commonly referred to as “misrepresentation.” In certain circumstances, misrepresentation can place a real estate agent’s professional license in jeopardy. Outlined below are some important factors to consider.
Was the misrepresentation fraudulent?
Fraudulent misrepresentation is arguably the most serious type of misrepresentation. This occurs when a real estate agent knowingly lies about a property or conceals pertinent information from a potential buyer. For example, a real estate agent knows there is a presence of asbestos in the home but has told the buyer that the house has been given the all-clear.
Was negligence present?
To claim fraudulent misrepresentation, a buyer must establish that the real estate agent purposely set out to deceive them. For negligent misrepresentation, all that must be proven is that the real estate agent made misleading or inaccurate claims. For instance, if the real estate agent claimed that the house falls within the catchment area of the best schools in the country, without knowing this for a fact, this could amount to negligence.
Protecting your professional license
Not all forms of misrepresentation are malicious or negligent. As a real estate agent, you may have honored your duty to speak truthfully and disclose all pertinent information, but still been accused of misrepresentation. If you find yourself in such a situation, it’s vital to defend your job and reputation. Obtaining legal guidance will offer you the best possible chance of doing this.