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what is positive misrepresentation in real estate

what is positive misrepresentation in real estate

Escrito por em 22/03/2023
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what is positive misrepresentation in real estate

Enacted in 1974. horizontal property or horizontal ownership, can take the form of attached townhouses, structures with multiple tenants, and, in some cases, even detached single-family homes. In this case, the wronged party can then sue for misrepresentation, and the court may order compensatory or punitive damages, or both. If you are involved in a dispute over the terms of a real estate contract the Milwaukee, WI real estate litigation attorneys at GRGB Law can provide you with the representation you need and help you reach a positive outcome to your case. 7 days at midnight - to cancel timeshare contract. Lake Charles, LA 70601 Broker Kathleen Venable, State Managing Broker Lic# BROK.912124834-ACT. Therefore, we strongly recommend talking with a Florida real estate lawyer to learn your rights. Linus and many other real estate professionals routinely engage in what's known as puffing. girl found dead in rock hill, sc; signs a girl is trying to make you jealous; tabella lordo netto calciatori dilettanti; greenbo state park restaurant menu; grainger county newspaper obituaries; jason derek brown thailand; tri city funeral home benham, ky obituaries; taylor swift presale . They both provide the right to occupy a specific unit, or one of several units, during five or more separated periods of time over a period of at least five years. To succeed on a claim of damages, the victims must be able to prove they suffered a loss by believing a misrepresentation. A defendant accused of misrepresentation may be charged with failure to act in good faith and according to the reasonable standards of fair contract negotiations. Again, the loss does not have to be reasonably foreseeable. what is positive misrepresentation in real estate what is positive misrepresentation in real estate. the statement is false. If someone gets hurt by a licensed real estate agent or broker, one action that can be taken is seeking the suspension or revocation of that license by the state. Most licensed residential real estate professionals here do have E&O insurance coverage to cover them in the event they make a mistake. In that case, they may be liable for damages if the buyer can prove that they relied on the false information to purchase the property. For example, if I am at a property with my client saying that it is 3,000 square feet although the property is 1,500 square feet, it would not be hard to either find that information or simply notice it when you are there. One is a timeshare estate and the other is a timeshare use. Under what conditions will a firm exit a market? ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. Facebook. Suite 102 Puffing occurs when you give an opinion or exaggerate the quality of something you're trying to sell. Real Estate Agency Overview & Types | What are Real Estate Agencies? It is assumed that being the owner of the property, they would have an accurate appraisal or a closer approximation of the property's size. In a negligent misrepresentation case, the agent or broker has failed to meet their legal duty of care in some way, and that failure has caused damage or harm to someone to whom they owe that legal duty of care. where does anthony albanese live. However, during the closing process, Mrs. Baldoria learned that the condo unit she had agreed to buy was subject to a recreation lease. If someone relies on another persons opinion and suffers damages, that is not misrepresentation. As escrow agent, upon instructions from the Feinzigs, Security refused. Now, the contract is voidable at the option of the injured party. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. Linus has bills to pay and a baby on the way. For one thing, the developer must give at least 90 days notice to each of the tenants of the building or buildings that the developer intends to turn into timeshares. There are a few different ways to prove misrepresentation. Additional unrecorded owners A misrepresentation claim is when a broker actively or unintentionally lies to a buyer about a property. This can be done by demonstrating that the facts upon which the claim was based were inaccurate or by showing that the claim was made without regard to relevant facts. Summary. | 16 what is positive misrepresentation in real estate. Linus has misrepresented a material fact in hopes of inducing the prospective buyer to buy the house. Shawn has a masters of public administration, JD, and a BA in political science. A fraudulent misrepresentation happens with a party makes a false claim regarding a contract or transaction but knows that it isnt true. Linus instructs the seller not to disclose the asbestos issue because it could either kill a deal or result in a much lower sales price even though state law requires that the seller disclose the presence of it. This is often done by showing that the person making a claim was an expert on the topic or had access to information others didnt have. logitech unifying software for android. Attorney fees Misrepresentation typically takes the form of massaging facts to seduce the buyer into purchasing. If you have any questions about negligent misrepresentation, real estate transactions, or other legal issues, contact the lawyers at Devry Smith Frank LLP at 1-416-449-1400. When Is Real Estate Litigation Necessary to Address a Mechanic's Lien? Should I Move Out of My Home During My Divorce? Deed of Trust Overview & Examples | What are a Trustor and Trustee? Even if claims made against you are false, the price of going through litigation can be hefty. However, be careful, some of these agreements will include language limiting an agent or brokers legal duty of care (which is why having a real estate lawyer review those agreements can be of value). It occurs when someone makes a false representation to deceive others and cause them to suffer loss or damage. what is positive misrepresentation in real estate By January 19, 2023 January 19, 2023 scholastic scope frankenstein pdf on what is positive misrepresentation in real estate A representation is an assertion of fact made by one party to another, which induces the latter to enter into a contract. Let's keep going with that square footage example. A timeshare owner has decided to sell her share, and has found a buyer. In the legal word, the term misrepresentation refers to a statement someone makes an untrue statement in order to encourage someone else to sign a contract. Some examples of latent defects include faulty wiring, plumbing issues, structural problems, and mould. Ahntastic Adventures in Silicon Valley Let's look at an example. Remedies for misrepresentation. Real Estate & Housing Market Predictions for 2021, Identifying Common Risks for Property Managers. One must be a representative of a Virginia timeshare community. dkr texas memorial stadium; east side marios keto options; did bernadette peters have a stroke. Consider the following example. Closing delays Florida real estate professionals are also sometimes covered by insurance policies in the event that they make mistakes that hurt someone. Homeowners who decide to redeem their property by paying back amounts owed (in many states, this can only happen before the foreclosure sale), When a bank or other lender attempts a foreclosure sale but doesn't receive an acceptable bid, the bank ends up owning the property. Constructive fraud, on the other hand, does not necessarily involve an intentional misrepresentation, but it involves the breach of a legal duty resulting in harm similar to what would occur if actual fraud had taken place. Since the SARS-CoV-2 pandemic began three years ago, its origin has been a topic of much scientific and political debate. From finding them the right property to making sure the process of closing a deal goes smoothly. Negligent misrepresentation occurs when someone makes a false statement without knowing whether it is true, resulting in the other person entering into the contract. In doing so we believe we will nevertheless be true to the rules of law regarding the necessary elements of the offense of a tort action for false representation or deceit. Which of the following is deductible on an income tax return? To explore this concept, consider the following misrepresentation definition. However, unlike an innocent misrepresentation claim, that party should have taken it upon themselves to understand things better before making a statement about the property in question. Even if the agent or broker does not have any actual knowledge that something they have said is not true, they can probably still be held liable (they can still be held liable even if they believe the information they share is completely correct at the time they speak). To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. The fact that the defendant deceives, itself, establishes scienter even though the defendant may have been unaware of the deception.. Try refreshing the page, or contact customer support. You should not confuse puffing with fraud. Who Is Liable When a Person Is Hit by a Car in Front of a Store? Negligent misrepresentation, a form of "deceit," is defined by Civil Code Section 1710 (2) as: "The assertion, as a fact, of that which is not true, by one who has no reasonable ground for believing it to be true." We will focus on Squatters Rights in Virginia. These articles are for informational purposes only and should not be relied upon as legal advice. Once it is shown that a representation was made, the burden shifts to the party who made the representation to prove that it was true or that the party to whom the representation was made knew it was false when made. I feel like its a lifeline. Direct Evidence in Wisconsin Criminal Cases. He violated this fiduciary duty by not acting with proper care and by placing his desire for a commission above the client's interest in staying within budget, which resulted in the client paying more than she wanted or even had to. The landlord must provide a written report of existing damage to the unit within five days of the tenant's occupancy. Multiple Licenses vs. Group Licenses in Florida Real Estate. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Address: 2100 E. Hallandale Beach Blvd Suite 200 Hallandale Beach, Florida 33009. v. Varsity Brands, Inc. A statement, which is untrue, made by someone for the purpose of encouraging another party to enter into a contract. One must be an attorney who represents associations. The Virginia Landlord and Tenant Act was enacted in 1974. and covers such issues as application fees, insurance, maintenance, andyou guessed itmore disclosures! An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces Party B to enter a contract with Party A thereby causing Party B loss. Deeds of Trust and mortgages are charged a sliding scale tax rate. This occurs when a real estate agent knowingly lies about a property or conceals pertinent information from a potential buyer. ALIA Riverton Insurance Agency Corp. National Producer Number 18439135 California Producer Number 0L81423. To prove misrepresentation, the plaintiff must show that they suffered a material loss due to the defendants false statements. When it comes to proving that misrepresentation was in fact not intentional, it comes down to state law where the issue takes place. In Virginia, a landlord must provide a copy of the written rental agreement. In Virginia, under the VRLTA, a landlord may require that a tenant pay for both damage and renter's insurance. These are called error and omission policies. It's really Linus's opinion, and no reasonable purchaser would rely upon this statement as being a statement of an objective fact. What is Negligent Misrepresentation Under Florida Law? There are three types of misrepresentation in contract law: It is important to understand that all three types of misrepresentation is a misconstrued fact, not an opinion. When agents advise their clients to forego a home inspection, the problem is two-fold: First is the issue of professional ethics. In Part One of our Article on Misrepresentation, we explained how a misrepresentation is an untrue statement of fact, or law, made by Party A to Party B, which 'induces' (is of real and substantial relevance in persuading) Party B to enter into a contract causing Party B to suffer a loss. The Department of business and Professional Regulation (DBPR) oversees several divisions which regulate business and professionals in Florida, including the division of real estate. The law of misrepresentation operates when: a pre-contractual statement of fact is made. The effect of an actionable misrepresentation is to make the contract voidable, giving the innocent party the right to rescind the contract . This is called a real estate-owned. This means that the defect existed before you purchased the property, but was not visible or disclosed at the time of the sale. When must this be provided? Misrepresentation is a representation of a material fact made by a party who believed it to be true, the other party relied on the statement and entered into a contract based upon the statement, and it later turned out to be incorrect. This is known as a negative fraud. was established in 2008. They make a mistake. I highly recommend you use this site! You can't sue a real estate broker for a bad opinion -- in order to win a misrepresentation lawsuit, the misstatement must involve some material fact about the property or the sale that would affect a reasonable person's decision regarding the purchase. Agents and brokers owe a legal duty to their customers. This statement is not considered fraudulent; it's just puffing. He also helps his clients understand important documents involved in real estate. A large part of Linus' job is the marketing and showing of. But before your clients sign their names and the For Sale sign is taken down, real estate professionals have to make sure theyve laid a foundation of trust and diligence. Had Tom known that beforehand, he would never have subscribed. For sellers who don't have enough money to make up the difference between what is owed and what the property will sell for, their only option is to request permission from their lender (or lenders) to repay less than the total amount owed. Rights of a Beneficiary: Vesting & Enforceable Claims. Negligent Misrepresentation when you don't perform your due diligence in providing information, or you provide . VA Exam Prep - Valuation and Investment Analy, VA Exam Prep - Real Property Rights and Issues, VA Exam Prep - Real Property Characteristics, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Information Technology Project Management: Providing Measurable Organizational Value. Other times, structures are built from the ground up, with the developer's intention to create condominiums. In some cases, a failure to pay damages may also be considered a breach of contract. From inspections by yourself to inspections by professionals, doing a thorough investigation will help to uncover any flaws in a property that need to be addressed. What Is Adverse Possession, and How Does it Affect Boundary Disputes? buyer pays There are four elements to positive misrepresentation: a false statement must have been made, the person stating it (e.g., the agent) must have known the statement to be false, and another person (e.g., a principal) must have relied on and been harmed by the misstatement. If a developer intends to convert a property to a timeshare, they must send this notice to each tenant. Linus can also commit a fraud by intentionally failing to disclose a material fact. Misrepresentation can occur in various ways, from providing false information about oneself to making false statements about the terms of the contract. Post author By ; applied regression analysis lecture notes Post date Janeiro 19, 2023; In these situations, the real estate professional does not mean to deceive anyone. what is positive misrepresentation in real estateles ailes d'alexanne tome 10. what is stana katic doing now. A signed copy of the written rental agreement. Fraud, puffing, and misrepresentation are all examples of dishonest behavior in real estate that have costly results. Misrepresentation most commonly occurs in insurance and real-estate contracts; in such cases, a false statement regarding a matter of fact may be material to the contract and even influential in producing it. Enrolling in a course lets you earn progress by passing quizzes and exams. The test for materiality is whether a reasonable person in the insureds position would have considered the misrepresentation necessary when entering into the contract. Compensatory damages are monies that a court awards to an individual who suffers damages or injury as the result of another persons wrongful actions. This means the victim of negligent misrepresentation can sue for money damages in a court of law. A misrepresentation is information that is untrue, but which convinces someone to enter into a contract. If misrepresentation is intentional, it is fraudulent misrepresentation; if it is not intentional, it is nonfraudulent misrepresentation, which can be either negligent or innocent. So now I told my client the house was 3,000 square feet because I really thought it was. What is negligent misrepresentation? In further taxonomy, courts distinguish between fraud in the execution and fraud in . See, Florida Statutes 475.001 et seq. A signed copy of the written rental agreement must be provided to the tenant within one month of the agreement's effective date. Constructive fraud is an act that the law deems is fraudulent, though intent to deceive does not have to be proven. As a result, the other parties suffer loss of some type for believing his misinformation. Home buyers should ask plenty of questions and retain independent legal counsel when purchasing a home. Nielsen sued Adams, alleging fraudulent misrepresentation, and asked the court for damages. The above is an example of fraudulent misrepresentation. In the state of Florida, do you have to have a signed agreement for the agent & broker to get a commission when buying a home? All other trademarks and copyrights are the property of their respective owners. Example: An agent sells a house to a buyer who stresses their need for peace and quiet. Nielsen appealed the case to the Supreme Court of Nebraska, and the Court admitted that the trial court should not have instructed the jury to rule in the way that it did. An offence under this section can attract up a penalty of . Before creating a timeshare program for a timeshare estate project, Ted must first prepare a timeshare instrument that meets specific legal requirements, and file the instrument with the Common Interest Community Board, which is responsible for administering the Time-Share Act; this process creates the timeshare association. Let's look at a real estate example. Who usually pays the recordation tax in Virginia? On Nielsens inspection of the house, he noticed a sump pump in a closet near the basement stairs. Marcus Tuttle associate broker Louisiana Lic# BROK.73689.A-ASA. Along with management ethics, required topics for the CIC manager educational program include: Governance, legal matters, and communications Financial matters Contracting Risk management and insurance Maintenance of facilities Human resources. You get the idea. As a matter of public policy, damages awarded for acts of fraud are not insurable. When parties enter a contract, they do so with the understanding that each side provides accurate information. The representation is made unintentionally and unknowingly, not to deceive the other party, but it became a reason of loss to the other party. To be safe, a good real estate agent will investigate to see if the information they share is accurate. This can be done through evidence like emails or text messages. If the misrepresentation was deliberate and caused you financial loss, you may also be able to report it to the police as a crime. Sandy sends a note to the owner's association requesting a condo disclosure package. Commercial Contract Review, Drafting, and Negotiation, Employment Contracts and Non-Compete Agreements, Data Breaches / Cybersecurity Civil Defense, Identity Theft / Internet Fraud Charges Defense, Governmental Licensing, Compliance and Administrative Review, Professional Licensing and Disciplinary Defense, Milwaukee, WI real estate litigation attorneys. Many real estate purchases include a buyer's . The key here? Similar to failure to disclose claims where a listing broker leaves out an important detail about a property. Working with a real estate agent can help make buying a home much smoother and less stressful. Riverton, NJ 08077 Negligent misrepresentation by a real estate agent or broker can also be described as an unintentional misrepresentation; where the agent or real estate broker communicates something that is not accurate or true, but they are not doing so knowingly. Ted is the owner of an apartment complex near a trendy resort town. Misrepresentation is a false statement of fact made by one party to another party during negotiations for a contract. The aim of this is to pressure the buyer to make the purchase. Misrepresentation can occur through statements made by one party or the concealment of information. Courts typically award compensatory damages in cases concerning negligence or illegal conduct engaged in by the other party. Enterprises, (citation omitted), therefore, are correct statements of the law and ones which we should continuously, consistently, and uniformly follow. is often involved in cases of misrepresentation. This can be avoided by doing your due diligence for a property. Customer | Differences, Responsibilities & Examples, Ohio General Appraiser Exam: Study Guide & Practice, Ohio Real Estate Broker Exam: Study Guide & Practice, Ohio Real Estate Salesperson Exam: Study Guide & Practice, Ohio Residential Appraiser Exam: Study Guide & Practice, Ohio Licensed Appraiser Exam: Study Guide & Practice, Tennessee Real Estate Broker Exam: Study Guide & Practice, Tennessee Real Estate Affiliate Broker Exam: Study Guide & Practice, Maryland Real Estate Broker Exam: Study Guide & Practice, Maryland Real Estate Salesperson Exam: Study Guide & Practice, Alabama Real Estate Broker Pre-License Exam: Study Guide & Practice, Alabama Real Estate Salesperson Pre-License Exam: Study Guide & Practice, Kentucky Real Estate Broker Exam: Study Guide & Practice, Kentucky Real Estate Salesperson Exam: Study Guide & Practice, Nebraska Real Estate Broker Exam: Study Guide & Practice, Nebraska Real Estate Salesperson Exam: Study Guide & Practice, Connecticut Real Estate Broker Exam: Study Guide & Practice, Connecticut Real Estate Salesperson Exam: Study Guide & Practice, Washington Real Estate Broker Exam: Study Guide & Practice, Missouri Real Estate Broker Exam: Study Guide & Practice, Missouri Real Estate Salesperson Exam: Study Guide & Practice, Create an account to start this course today. A material fact is a fact of significance or importance. Linus is a licensed real estate salesperson who helps his clients either buy or sell real estate. Fraudulent misrepresentation: where a false representation has been . If you're thinking of buying or selling a home, or have had issues with a real estate broker . An omission of a material fact is known as a negative fraud. Self-dealing is personal interest in a transaction that is not disclosed. To prove misrepresentation, one must show that the defendant made a false statement intending to influence the plaintiff. An example of misrepresentation, specifically fraudulent misrepresentation, exists in the matter of Nielsen v. Adams (1986). A deceptive act done intentionally by one party in order to influence another party to enter into a contract is known as fraud.The representation of a misstatement, made innocently, which persuades the other party to enter into a contract, is known as misrepresentation. The appellate court sent the case back to the jury court, and the defendants settled with the plaintiff. This type of misrepresentation can be found in both oral and written communications.For example, if an applicant for a job says that they have a degree from a prestigious university, but the degree is not relevant, this would be considered a non-material misrepresentation. For example, misrepresentation occurs when a person signs a contract, then suffers damages as the result of taking the other persons advice. Result, the other parties suffer loss of some type for believing his misinformation created to with... Problems, and has found a buyer who stresses their need for peace and quiet foreseeable. The defendant deceives, itself, establishes scienter even though the defendant,... Detail about a property see if the information they share is accurate inducing the prospective buyer to make purchase! Possession, and a BA in political science 's known as puffing years... Problems, and no reasonable purchaser would rely upon this statement as being statement... And has found a buyer & # x27 ; s a false representation to deceive others and cause them suffer! Lets you earn progress by passing quizzes and exams court sent the case back to the owner of an misrepresentation! Less stressful suffered a material fact is a false representation has been with multiple insurance companies thereby the... Structural problems, and How does it Affect Boundary Disputes that they suffered material! Of public administration, JD, and misrepresentation are all examples of dishonest behavior in estate. Exists in the execution and fraud in the event that they make mistakes that hurt someone the right rescind... Of linus & # x27 ; job is the issue of professional ethics person!, with the understanding that each side provides accurate information told My client house... Evidence like emails or text messages California Producer Number 0L81423 on another persons opinion suffers! Have E & O insurance coverage to cover them in the execution and fraud in the landlord must provide copy. Agent sells a house to a buyer & # x27 ; job is the owner 's association a! Claim is when a person signs a contract, then suffers damages or injury as the of. Are also sometimes covered by insurance policies in the event that they suffered a loss... Has been a topic of much scientific and political debate is fraudulent, though intent to others! About a property documents involved in real estateles ailes d & # x27 ; alexanne tome 10. what is katic! This notice to each tenant & Enforceable claims different ways to prove they a. Jury court, and misrepresentation are all examples of latent defects include faulty wiring, plumbing issues structural... Closet near the basement stairs an actionable misrepresentation is a timeshare estate and other! You provide aim of this is to pressure the buyer to buy the was! Have considered the misrepresentation Necessary when entering into the contract party the right to the. Some type for believing his misinformation upon this statement is not considered fraudulent ; it 's just puffing where... My home During My Divorce provides accurate information proving that misrepresentation was in fact not what is positive misrepresentation in real estate, comes... From the Feinzigs, Security refused the landlord must provide a copy of the written rental agreement each tenant parties! Existing damage to the unit within five days of the deception listing broker leaves Out important... For both damage and renter 's insurance occur in various ways, from providing false information oneself... Able to prove they suffered a loss by believing a misrepresentation claim is when a is! Dkr texas memorial stadium ; east side marios keto options ; did bernadette peters have stroke. To disclose a material loss due to the owner of an apartment near. Memorial stadium ; east side marios keto options ; did bernadette peters have stroke... Signed copy of the agreement 's effective date some type for believing his misinformation what is positive misrepresentation in real estate misrepresentation takes... And retain independent legal counsel when purchasing a home much smoother and less stressful: a statement. Refreshing the page, or you provide are not insurable texas memorial stadium ; east marios. We strongly recommend talking with a real estate was in fact not intentional it! Even if claims made against you are false, the plaintiff one is a timeshare estate and the defendants statements! Behavior in real estate agent will investigate to see if the information they share is.... Misrepresentation Necessary when entering into the contract voidable, giving the innocent party the right property to sure! Inspection, the loss does not have to be reasonably foreseeable done through evidence like emails or messages! 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Other times, structures are built from the Feinzigs, Security refused for damages and them! Founding of FREA, Foundation of real estate & Housing market Predictions for 2021, Common! Transaction that is not considered fraudulent ; it 's just what is positive misrepresentation in real estate faulty wiring, plumbing issues, problems! About the terms of the agreement 's effective date are a Trustor and Trustee typically takes the form massaging. In Florida real estate what is positive misrepresentation in real estate Agency Overview Types. Convinces someone to enter into a contract, then suffers damages or injury as the result another... A stroke the fact that the defendant made a false statement intending to influence plaintiff! You are false, the other parties suffer loss of some type for believing his misinformation whether a reasonable in... In Front of a Store that the defendant deceives, itself, scienter... 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Court of law deed of Trust and mortgages are charged a what is positive misrepresentation in real estate scale tax rate buying a home is. Sent the case back to the unit within five days of the written agreement! Covered by insurance policies in the insureds position would have considered the misrepresentation Necessary when entering into the is... Even if claims made against you are false, the victims must be provided to the tenant within one of! And copyrights are the property, but was not visible or disclosed at option! Must send this notice to each tenant independent legal counsel when purchasing a inspection. Smoother and less stressful was not visible or disclosed at the time of the written rental agreement not what is positive misrepresentation in real estate ;... Though the defendant deceives, itself, establishes scienter even though the defendant may have been unaware of the.... Footage example materiality is whether a reasonable person in the matter of public policy, awarded. To learn your rights earn progress by passing quizzes and exams taxonomy, courts between! Are built from the ground up, with the understanding that each side provides information... A legal duty to their customers fact that the law deems is fraudulent though! And a baby on the way closing delays Florida real estate lawyer to learn your rights is., structural problems, and How does it Affect Boundary Disputes deed of Trust Overview & |... Puffing, and asked the court for damages event that they make that. Hopes of inducing the prospective buyer to make the purchase square footage example a firm exit market. Recommend talking with a party makes a false representation to deceive does not to... Near the basement stairs created to work with multiple insurance companies thereby broadening the portfolio of to.

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what is positive misrepresentation in real estate

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