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Background of Fraudulent Non-Disclosure

May 17, 2017 Posted in Blog

Where do most claims arise?

That’s easy! Misrepresentation or non-disclosure regarding the property or some aspect of the property.

Misrepresentation and Non-Disclosure: There are three types of actions used involving misrepresentation and non-disclosure.

The first is a fraudulent misrepresentation, also known as fraud. It’s a very serious charge.




The elements of fraudulent misrepresentation are:

  1. Someone misstated an existing fact;
  2. The person making the statement knew it was false;
  3. The false statement induced the recipient to take action;
  4. The recipient relied on the misstatement, and
  5. Suffered damages as a result of this reliance.

The elements of negligent misrepresentation are nearly the same as a fraudulent misrepresentation but with a difference: the person making the representation did not know it to be false but should have known it was false. (The element of reliance is also different, as we will more fully discuss in an upcoming post.)

The elements of fraudulent non-disclosure are essentially the same, except that instead of making a statement, an issue is not disclosed.

Simply put: You can face major trouble if you make a statement that you know is false; make a statement that you should know is false; or fail to disclose something you should disclose.

With offices in downtown Pensacola, Pace and Pine Forest, Clear Title provides professional residential real estate closing services throughout the Florida Panhandle. If you are looking for a professional closing company with a long track record of successful, error-free closings, we invite you to get in touch. To speak with one of our professionals about your closing in Northwest Florida, inquire online or call Pace office (850) 994-3838 or Pine Forest office (850) 202-8518 today.

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