The Risks of False or Misleading Statements in Real Estate
In real estate, trust is everything. Clients rely on REALTORS® to provide honest, accurate information—so when that trust is broken, the consequences can be serious. Unfortunately, some agents make false or misleading claims about properties, whether it’s overstating square footage, glossing over needed repairs, or failing to disclose material defects.
For buyers, these misrepresentations can lead to overpaying for a home or being hit with unexpected repair costs after the sale. Discovering hidden structural issues or realizing a property isn’t as advertised can result in financial strain, frustration, and even legal action.
These dishonest practices don’t just hurt buyers—they also damage the industry’s reputation. When one agent cuts corners or withholds critical information, it reflects poorly on all REALTORS®, including those who hold themselves to high ethical standards. Beyond the damage to trust, agents who mislead clients can face real consequences: fines, loss of licensure, and potential lawsuits.
REALTORS® have both a legal and ethical obligation to disclose material defects and present property details accurately. Whether misrepresentation is intentional or the result of carelessness, it violates professional standards and consumer protection laws. That’s why it’s so important to verify facts, disclose known issues, and maintain open, honest communication throughout the transaction.
At the end of the day, honesty and transparency are key to a successful real estate career. REALTORS® who lead with integrity not only protect their clients—they build lasting relationships and a strong professional reputation in the process.
Author: George Thomasson, REALTOR®