Agency & Ethics
Fraud
Standard Definition
Intentional misrepresentation or concealment of material facts designed to deceive another party into acting to their financial detriment.
Detailed Examination Analysis
Fraud in real estate involves the intentional deception of a buyer or seller. Unlike misrepresentation (which can be negligent or innocent), fraud requires a deliberate intent to mislead. Common examples include lying about a property's condition or altering documents.
Real-World Examination Scenario
"A seller covers up structural cracks in the foundation with paneling to hide them from buyers. This intentional concealment of a material defect constitutes fraud."
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