- The act of misrepresenting a product or service and misleading a perspective client, investor, or buyer in order to make a sale. An unethical salesperson mis-selling a product may leave out certain caveats or information to make a product sound better or more relevant to the buyer than it truthfully is. For example, a computer salesperson may tell a customer to buy a $2,000 computer when a $500 computer will do the exact same tasks at a quarter the cost, or an insurance agent may try to persuade an individual without dependents to buy a life insurance policy they do not need.
undisclosed information, misrepresenting, misleading
Related Terms and Acronyms
- Agent (agt) — Abbreviation,
- A person who acts on behalf of another. In real estate, an agent is a person who conducts transactions on behalf of sellers and sometimes buyers.
- Clean Sheeting — Definition,
- A type of insurance fraud where an individual deliberately fails to disclose a pre-existing condition in order to receive coverage, sometimes with the help of an insurance broker.
- Concealment — Definition,
- The act of lying or omitting information when applying for insurance coverage.
- Disclosure — Definition,
- A statement listing potential defects to a property, such as the possible existence of lead paint or radon.
- A statement required by most provinces that requires the creditor to tell the debtor the annual percentage rate, finance charges and other terms of a loan.
- Fiduciary Duty — Definition,
- A requirement that someone in a position of trust, such as a banker, real-estate agent, or title agent, must act in good faith and trust on behalf of a client.
- Insurance Fraud — Definition,
- An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
- Property Report — Definition,
- A legal document prepared by a surveyor that shows the locations of all visible public and private improvements relative to property boundaries.
- A legal disclosure that developers of timeshare properties are required to give to prospective buyers.
- Statute of Frauds (SOF) — Acronym,
- A law which provides that certain contracts must be in writing to be enforceable at law. This includes real estate contracts.
- Unfair Claims Practice — Definition,
- The act of an insurance company avoiding or reducing valid insurance claims.