Legal Question in Real Estate Law in California

The Code of Ethics of the National Association of Realtors, Article 2, says, "Realtors� shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating the property or to a transaction." I would say this covers misrepresentation of competing offers.

Also, a broker or agent commits intentional misrepresentation by suggesting as a fact something that is not true, when the broker or agent does not believe it to be true. See Civil Code sections 1572(1) (fraud) and 1710(1) (deceit).

A real estate licensee can have his or her license suspended or revoked by the Department of Real Estate for making misrepresentations of fact during the course of a deal; see, e.g., Business & Professions Code sections 10176(a), 10177(j), 10177.5, etc.