What is the effect of misrepresentation by an agent in real estate?

Misrepresentation by an agent in real estate can have serious consequences, particularly in terms of liability. When an agent provides false information—whether intentionally or inadvertently—this misrepresentation can harm clients or third parties who rely on the accuracy of that information. As a result, the injured party may seek damages for any losses incurred due to the reliance on these false statements.

In many jurisdictions, agents have a legal duty to disclose material facts and to refrain from misleading clients. If an agent fails to uphold this duty, they can be held accountable for the repercussions of their actions, which includes financial liability. This principle protects consumers and ensures that agents maintain a standard of honesty and integrity in their transactions.

Addressing the other choices, higher commissions, voiding the agency agreement, or having no impact on the transaction do not align with the legal framework surrounding agency misconduct. Misrepresentation typically does not allow for an increase in commission and does not automatically terminate an agency agreement. Additionally, it generally does have significant repercussions, contrary to the notion that it has no impact. The focus is clearly on the potential for liability and the protection of consumers within real estate transactions.