A misrepresentation is a false statement by one party about a material fact that induces another party to render something, usually a consideration, as a result of their reliance on the misrepresentation. A misrepresentation is an act or statement that leads another into error and misleads or deceives him/her. The misrepresented has been induced to enter the contract upon the terms proposed by the misrepresent.
Misrepresentation is a highly litigious issue, therefore misrepresentation in the real estate industry should be taken very seriously. In fact, misrepresentation can form the basis for a lawsuit against an individual if one's property value has been reduced because of misrepresentations by others. A misrepresentation must be serious enough to change or induce someone to enter into a contract with another party. As a result of misrepresenting material facts in order to get someone else to buy a house at a higher price than they would have otherwise paid, one may engage in misrepresentation which could mean a financial loss for that person.
Highly populated cities such as Phoenix and Tucson have laws that dictate when misrepresentation occurs and how much money can be sought as a result of the misrepresentation.
Overview of misrepresentation: misrepresentation is knowingly making false statements about material facts. Misrepresentation damages can take various forms such as an amount equal to the difference between what one was willing to pay and what they actually paid (at closing).
