What is the primary reason a broker is liable for misrepresentation during a real estate transaction?

A broker's liability for misrepresentation in a real estate transaction primarily stems from their own written statements. This is because brokers are expected to possess a certain level of expertise and knowledge regarding the properties they represent, which places a responsibility on them to ensure that the information they provide is accurate. When a broker makes written statements about a property that are misleading or false, they can be held liable for those misrepresentations.

In real estate transactions, brokers often share specific details about properties, such as their features, condition, or financial aspects, both in formal documents and informal communications. If these statements contain inaccuracies, they can mislead clients and other parties involved in the transaction, leading to potential legal repercussions for the broker.

Although failure to disclose material information is also a crucial aspect of a broker's responsibility, the focus here is specifically on the liability that arises from the broker's own statements, which can include written representations that create an expectation about the property's value or condition. Therefore, the broker's own written statements serve as a key factor in establishing liability for misrepresentation.