What constitutes misrepresentation in real estate?

Misrepresentation in real estate occurs when someone provides false or misleading information about a property, which can deceive or mislead potential buyers or tenants. This is crucial because accurate information is essential in real estate transactions to ensure that all parties make informed decisions. When a seller, agent, or broker knowingly provides false information or omits significant details that can affect a buyer's decision, it constitutes misrepresentation. Such actions can lead to legal consequences, including lawsuits and loss of license.

Providing accurate information or failing to disclose a defect does not fall under misrepresentation as they do not involve knowingly giving false information. While failing to disclose a defect can be seen as a breach of duty or trust, it is not synonymous with providing false information. Likewise, while making exaggerated claims may mislead buyers, it doesn't always constitute outright falsehoods, which are central to the definition of misrepresentation. Thus, providing false or misleading information is the clearest and most direct form of misrepresentation, making it the correct answer in this context.