How is fraud defined in real estate?

Fraud in real estate is defined as intentional deceit or lying, which means that one party knowingly misrepresents or conceals information to manipulate another party into making decisions that they would not have made if the truth were known. This can include false statements about property features, misrepresentation of financial information, or hiding liens and encumbrances on a property. Such actions are considered fraudulent because they violate the principles of honesty and transparency that are fundamental to real estate transactions.

In contrast, misunderstandings are typically unintended miscommunications and do not carry the malicious intent required for fraud. True statements involve factual information, and thus cannot constitute fraud because they do not involve deceit. Undue influence refers to the manipulation of a person's decision-making process but does not necessarily involve deceit or false representation, distinguishing it from fraud. Therefore, the definition focused on intentional deceit accurately captures the essence of fraud in real estate transactions.