Misrepresentation in Texas Real Estate Law: An Overview

Real estate transactions often involve high-value property and long-term financial commitments. When one party makes a false statement—whether intentionally or by mistake—it can have serious legal consequences. In Texas, buyers, sellers, brokers, and agents all have duties that are closely scrutinized under state law. One common source of legal conflict is misrepresentation, which can be either intentional (fraudulent) or negligent.

This article kicks off a 10-part series on misrepresentation in Texas real property cases. We’ll break down the types of claims available, the legal duties of each party, relevant case law, and effective litigation strategies—whether you’re filing suit or defending against one. Use the left-hand menu to explore each topic in detail.

What Is Misrepresentation in Real Estate?

Misrepresentation occurs when a party makes a false statement of fact that leads another to rely on it to their detriment. In the context of real estate, this might involve:

  • Falsely claiming that property boundaries extend further than they do
  • Misstating that a lot is buildable or suitable for a certain use
  • Failing to disclose known structural defects or code violations
  • Incorrectly asserting that certain improvements (e.g., fences, sheds) are legally placed

Texas law distinguishes between negligent misrepresentation—where the party did not intend to deceive but failed to use reasonable care—and intentional misrepresentation or fraud, where falsehoods are knowingly made.

Why These Claims Matter

Misrepresentation claims in real estate can lead to rescission of the contract, recovery of damages, or statutory remedies under the Texas Deceptive Trade Practices Act (DTPA). These lawsuits often arise during or after a real estate sale and can significantly affect property ownership, contract enforcement, and even professional licensing for brokers and agents.

The consequences can include:

  • Loss of the deal deposit or purchase money
  • Claims for repair costs or diminished property value
  • Treble damages under the DTPA (in cases of intentional deception)
  • Attorney’s fees and court costs

Both plaintiffs and defendants must understand their obligations and potential liabilities under Texas real estate law. That’s where this guide comes in.

Key Legal Doctrines Covered in This Series

This website section will explore multiple types of real estate misrepresentation claims, including:

  • Negligent Misrepresentation: Based on a failure to exercise reasonable care when providing information.
  • Intentional Misrepresentation or Fraud: Involving knowingly false statements or concealment.
  • Deceptive Trade Practices Act (DTPA) Violations: A powerful consumer statute that often applies to real estate transactions.

We’ll also examine how Texas courts analyze justifiable reliance, the impact of disclaimers, and what duties fall on buyers, sellers, and agents.

Who Can Be Held Liable?

Liability for misrepresentation is not limited to the person who owns the property. Under Texas law, any of the following may be responsible:

  • The seller, for failing to disclose known defects or for providing false information
  • The buyer, if they attempt to void a deal without due diligence
  • The listing or buyer’s agent, for inaccurate representations made during the sales process
  • The broker or firm, if the agent was acting within the scope of employment

In Miller v. Keyser, the Texas Supreme Court affirmed that a real estate agent may be held personally liable under the DTPA, even if they acted within their employment scope and did not intend to deceive. This key case illustrates how broad Texas courts interpret responsibility for misrepresentation.

What Comes Next?

This introductory article is just the beginning. Here’s what the rest of the series will cover:

  1. Negligent Misrepresentation: Elements, examples, and defenses
  2. Intentional Misrepresentation: How fraud claims work
  3. Sellers’ Duties: What must be disclosed and when
  4. Buyers’ Responsibilities: Due diligence and reliance
  5. Agent & Broker Liability: The Miller v. Keyser framework
  6. DTPA Claims: Tools for consumers in real estate disputes
  7. Comparing Legal Theories: When to use fraud, negligence, or DTPA
  8. Defenses to Misrepresentation: How claims are defeated
  9. Strategic Tips: Litigation and settlement best practices

Whether you’re a consumer, investor, broker, or attorney, this series is designed to provide real-world, legally grounded guidance tailored to Texas property law.

Need Legal Advice?

If you believe you’ve been misled in a real estate transaction—or accused of making misstatements—contact Guerra Days Law Group. We help clients across Texas protect their rights and recover what they’re owed.

Stay tuned for Page 2: Understanding Negligent Misrepresentation in Property Transactions