Can a Realtor or Real Estate Agent Commit Real Estate Fraud?
A realtor or real estate agent commits fraud when THEY PERSONALLY know of material facts about a property that would influence your decision to purchase the property and they conceal that information or fail to disclose it.
This is normally what happens. The real estate agent knows there are negative facts about a house that will kill a sale so they secrete, hide, deceive and conceal those facts so that the buyer will not discover them until the sale is final, if ever.
Less common is where the real estate agent or realtor represents that material facts are a certain way when they are of another. For example, if the home had termite damage repaired and paid for by the realtor or the realtor's principal, and the realtor then represents that no such repairs were made, that would be a direct misrepresentation. More common is the method used by more than a few real estate agents is that they would simply not disclose one way or another about the previous termite damage being repaired and will even have the seller just leave that condition question blank on the sellers' disclosure form.