What constitutes a misrepresentation in real estate advertising?

In real estate advertising, misrepresentation occurs when information presented is not truthful or is misleading, leading to potential consequences for buyers, sellers, and agents.

Exaggerating property features is a clear form of misrepresentation because it involves presenting the property in an overly favorable light that does not accurately reflect its actual characteristics. For example, advertising a home as having "Stunning views" when the views are minimal or obstructed would mislead potential buyers, as they are making decisions based on incorrect expectations.

While incorrectly pricing the property, failing to disclose known defects, and making misleading claims about property value can also lead to disputes and issues with ethical standards, exaggerating property features directly implicates the representation of physical attributes and can be deemed fraudulent if it creates a significant distortion of reality in marketing. Therefore, it constitutes a misrepresentation since it relies on deception to influence the perceptions of prospective buyers.