Misrepresentation, fraud, professional ethics, and the sales associate's duties to the broker

Truth, care, and loyalty

A misrepresentation is a false statement of fact. Intentional misrepresentation involves knowing deception; negligent misrepresentation involves a lack of reasonable care in supplying information. Fraud generally involves a material false representation, knowledge of falsity, intent to induce reliance, and reliance causing injury. Concealment can also be wrongful when a duty to disclose exists. An honest mistake is not automatically intentional fraud, but lack of intent does not excuse careless professional work.

Puffing is subjective sales opinion, such as “a delightful garden.” “The roof was replaced last year” is a verifiable factual claim. Do not dress an unsupported fact as opinion. Verify information, identify uncertainty, correct errors promptly, and recommend qualified specialists when a question exceeds your competence.

Florida duties protect the public

Florida Statutes section 475.278 requires honest and fair dealing in transaction brokerage, single agency, and no brokerage relationship. In each setting, a licensee must disclose known facts that materially affect residential property value and are not readily observable to the buyer. A seller's request to hide a known concealed structural defect does not remove that duty. Confidential negotiating information and required defect disclosures are different categories.

For a Florida transaction broker, skill, care, and diligence are required, as is timely presentation of offers and counteroffers unless the party previously directs otherwise in writing. A single agent also owes loyalty, confidentiality, obedience, and full disclosure. Obedience means lawful instructions, not participation in deception.

The associate works through the broker

Under Florida Statutes section 475.42, a sales associate cannot operate as a broker or perform brokerage services for someone other than the registered employer. Brokerage money may be collected only in the employer's name and with the employer's express consent. An associate seeking compensation through a lawsuit must proceed against the person registered as the employer when the services were performed, not directly against the customer.

Follow the broker's lawful policies, communicate material developments, account for entrusted funds, and avoid secret profits or competing side arrangements. An independent-contractor agreement does not authorize independent brokerage. Ethical practice goes beyond asking whether conduct is expressly prohibited: protect trust, disclose conflicts, and put accurate information ahead of a quick closing.

Before acting, ask: Is this statement supported? Is disclosure required? Am I acting through my registered broker with proper authority?