What does fraudulent misrepresentation refer to in real estate?

Fraudulent misrepresentation in real estate refers to false statements that are made knowingly by one party to deceive another. This means that the individual making the misrepresentation is aware that the information they are providing is not true and is intending to mislead the other party. This type of misrepresentation can lead to significant legal consequences, as it undermines the integrity of transactions and can result in damages for the affected party.

In real estate, this can occur in various contexts, such as a seller knowingly stating that a property is free of defects or failing to disclose significant issues. The key aspect of fraudulent misrepresentation is the intention behind the act; it is not just a simple error or a misleading statement that lacks full context, but rather a deliberate act meant to deceive someone for personal gain. Because of this intentionality, it is treated seriously under the law and can expose the perpetrator to litigation or penalties.