Suing Real Estate Agent for Misrepresentation in Small Claims Court

Disclaimer: DoNotPay.com is not a law firm and is not licensed to practice law. This guide is meant to provide generic information on how to protect your rights and petition the government. This guide does not reflect the services provided by DoNotPay.com. Please do your own research.

Your house is likely the most expensive purchase that you will ever make. Most real estate transactions go smoothly, but in rare cases, buyers may feel duped if their realtor falsely represented the property in some way. This can be grounds for .

There are three types of real estate misrepresentation: innocent, negligent, and fraudulent.

Innocent Misrepresentation	An innocent misrepresentation is typically unintentional and causes little to no harm. Often, these issues walk a fine line between a lawsuit and a situation that you may simply have to live with.
Negligent Misrepresentation	A negligent misrepresentation occurs when the realtor makes a false statement or fails to disclose an issue out of ignorance. In other words, they didn't know about an issue, but they should have.
Fraudulent Misrepresentation	A fraudulent misrepresentation is an intentional falsification, often meant to cover something up. For example, the realtor explicitly told you there were "no pest issues" when they actually knew about an existing termite problem.

In a strong case, the misrepresentation should involve a "material fact" about the property. In real estate, a material fact is anything that would affect at least one of the following:

The value of the property
Your decision to purchase the property
How much you would be willing to pay for it

However, you can't send demand letters to a real estate agent for a difference of opinion. Keep in mind that phrases like "good condition," "great neighborhood schools," and "majestic views" are highly subjective.

Top Reasons to File a Lawsuit Against a Real Estate Agent for Misrepresentation

Send Demand Letters To a Real Estate Agent for Failure to Disclose a Property Defect

One of the top reasons that real estate agents are sued is the failure to disclose defects such as:

Foundation problems
Roof issues
Termite and other pest infestations
Asbestos
Radon
Mold
Lead pipes or paint
Faulty electrical wiring

Some of these issues can pose a safety hazard and require expensive repairs or renovations.

Send Demand Letters To a Realtor for Failure to Disclose an Easement

An easement is when someone else has the right to cross or access your land. Oftentimes, an easement is in place so that one parcel of land can access the closest public road. For example, your neighbor's driveway may pass through your property.

Sometimes, an easement has been in place for decades and will not cause any inconvenience. In other cases, an easement can affect how you use and enjoy your land. Either way, real estate agents have a duty to disclose them.

How to File a Lawsuit Against a Real Estate Agent for Misrepresentation By Yourself

It can take a lot of work to file a lawsuit on your own.

First, you need to find out what the small claims court dollar limit is for your state. In some states, it's as low as $2,500. For real estate issues, that isn't a lot of money. If your damages are greater than your state's limit, then you'll want to contact a real estate attorney for help.
If small claims court is the route you want to take, you must weigh the pros and cons of sending a demand letter. This letter is addressed to the real estate agent and lays out your issues in black and white. A demand letter gives the agent a chance to make amends on their own, and notifies them of your intent to send demand letters to. In some jurisdictions, a demand letter may be required.
Next, you’ll need to gather any evidence to back up your claim. This may include closing documents, emails, texts, voicemail messages, photos, and videos.
Then you'll need to visit your local clerk of court office. The staff there can let you know what forms you need to fill out to start your case.
Next, you'll need to make arrangements to have these forms served to the real estate agent. Each jurisdiction has its own requirements for serving a court document to an individual. The clerk of court may know what options are available to you.
Lastly, you'll need to prepare for your upcoming court dates.

Potential Issues With Filing a Lawsuit by Yourself

The process of suing your realtor in small claims court may be easier said than done. You might have to take a day off of work to visit the clerk of court's office. Or, you could hit a snag when trying to serve the papers to your real estate agent.

While the clerk of court can guide you in the right direction, they cannot provide any advice. One small typo or error could make your paperwork, or even your entire case, invalid. You may find that you will save time and money by working with a professional.

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