Avoiding the pitfalls of fraudulent misrepresentation in real estate

On Behalf of | May 29, 2024 | Real Estate Disputes, Real Estate Transactions

As a property seller, it is crucial to provide correct information about the properties you are selling. This is not only a legal obligation but also an ethical one. If you intentionally give false information or hide key details about the property, you could face allegations of fraudulent misrepresentation. This claim could potentially lead to legal action. Here are three pitfalls that you should avoid as a property seller:

Hiding property defects

One of the most common traps is concealing property defects. It might be tempting to hide issues such as mold, water damage or structural problems to secure a sale. However, this can lead to claims of fraudulent misrepresentation.

Overstating property features

Exaggerating features, such as square footage, can also lead to claims of fraudulent misrepresentation. You should always provide accurate information to avoid potential legal issues.

Failing to disclose environmental hazards

The law requires you to reveal environmental hazards, like the presence of lead paint or asbestos. Failing to do so can result in serious legal consequences, including fines and potential imprisonment.

How you can avoid fraudulent misrepresentation

To avoid these pitfalls, it is critical to prioritize transparency and honesty. Always disclose known issues with the property, including existing or past problems with infestation and plumbing, repair history and structural damages. You must also avoid overstating its features, and only provide accurate measurements and realistic descriptions of properties and amenities.

Fraudulent misrepresentation can have severe consequences, including financial penalties, damage to your reputation or in extreme cases, criminal charges. By understanding these common traps and taking steps to avoid them, you can protect your interests and ensure a smooth transaction.

Address accusations with legal support

If you are facing allegations of fraudulent misrepresentation, seeking legal guidance would be vital. An experienced real estate lawyer can help you understand your situation and represent your best interests.