How do misrepresentations differ from omissions in a real estate context?

Misrepresentations and omissions are two distinct concepts in real estate that significantly impact the duty of disclosure and ethical obligations of agents. Misrepresentation refers to providing false information or misleading statements about a property. This can occur intentionally, where a seller or agent knowingly provides incorrect information, or unintentionally, where incorrect statements are made without malicious intent but still mislead the other party.

On the other hand, omissions refer to failing to disclose important information, which, although it may not involve false statements, creates a lack of transparency and can lead to misunderstandings. Omissions can be seen as a type of misrepresentation because they also create a misleading impression about the property, as they can result in the same consequences as providing incorrect information—namely, that a buyer or another party is not fully informed.

Understanding the distinction and relationship between misrepresentations and omissions is critical in real estate, as both can lead to legal repercussions and ethical violations. Misrepresentations can be actionable in legal disputes, whether intentional or not, whereas omissions may result in similar liabilities if they significantly mislead parties involved. This highlights the importance for real estate professionals to be thorough and honest in their communications concerning property facts and conditions.