What is the difference between fraud and misrepresentation in real estate law?

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The key idea here is fault and intent. Fraud is about knowingly making a false statement or concealing a material fact with the aim of deceiving the other party in a real estate transaction—the person knows the statement is false or acts with reckless disregard for the truth. Misrepresentation covers false statements that deceive, but it doesn’t require that intentional deception; it can be innocent (the speaker genuinely believes the statement is true) or negligent (careless failure to verify facts).

In practice, a seller who knowingly lies about a roof’s condition commits fraud, while a seller who genuinely believes the roof is new but is mistaken might be liable for negligent misrepresentation. Misrepresentation isn’t automatically criminal; fraud can lead to civil liability and, in some cases, criminal charges. That’s why the best description is that fraud involves an intentional deception, whereas misrepresentation can be innocent or negligent.