What is an example of willful misrepresentation?

The example of willful misrepresentation is found in the practice of failing to disclose material facts. Willful misrepresentation involves knowingly providing false information or intentionally omitting important details that could influence a party's decision. In the context of real estate, material facts are significant pieces of information that could affect the value or desirability of a property, such as structural issues, neighborhood crime rates, or zoning restrictions.

When an agent or seller knows about these material facts but chooses not to disclose them, it is a clear act of misrepresentation. This not only violates ethical standards but can also lead to legal repercussions, as it misleads the buyer and prevents them from making an informed decision.

Other choices, such as omitting minor details or providing vague statements, do not carry the same weight of willful misrepresentation because they typically do not involve a fundamental distortion of truth regarding material facts. Incorrectly stating financial figures can also be serious, but if it is done out of error rather than intent, it may not constitute willful misrepresentation. The key element in willful misrepresentation is the intentional nature of withholding information that is essential for the transaction.