Which term describes the misstatement or omission of facts in a real estate transaction?

The term that describes the misstatement or omission of facts in a real estate transaction is misrepresentation. This occurs when a party provides false information or fails to disclose critical facts which could influence the decision-making of another party involved in the transaction. Misrepresentation can be either intentional, where the person knowingly provides false information, or unintentional, where the information provided is false but the person did not know it was incorrect.

Understanding misrepresentation is crucial for anyone involved in real estate transactions, as it can lead to legal consequences, affect the value of a property, and erode trust between parties. Recognizing the importance of accurate and honest communication in real estate helps to ensure that all parties make informed decisions based on the complete and truthful representation of the property and the terms of the transaction.