Which type of misrepresentation occurs when a false statement is made intentionally?

The type of misrepresentation that occurs when a false statement is made intentionally is known as fraudulent misrepresentation. This occurs when a person deliberately deceives another party by making false statements, knowing that they are not true, with the intent to induce the other party into an agreement or decision. In the context of real estate, an agent or seller might provide misleading information about a property’s features or history purposely to lead buyers to act in a certain way.

Understanding fraudulent misrepresentation is critical for maintaining ethical standards in real estate transactions, as it can lead to legal consequences, including the possibility of rescinding contracts and seeking damages. The intentional nature behind this type of misrepresentation distinguishes it clearly from other forms, such as innocent or negligent misrepresentation, where false statements may arise without intent to deceive. Failure to disclose refers to the omission of necessary information rather than a false statement, further emphasizing that the nature of fraudulent misrepresentation is rooted in intentional deceit.