Under the DTPA, sellers, brokers, and other real estate professionals cannot make false or misleading statements about a property. To be actionable, these misrepresentations must involve material facts rather than subjective opinions or general sales talk Tex. Capital Sec., Inc. v. Sandefer, 58 S.W.3d 760.
Examples of actionable misrepresentations include:
- Falsely claiming a home is in a flood-free zone
- Misstating the condition of a roof, plumbing, or foundation
- Concealing known defects
- Exaggerating the value of a property based on false appraisals
A broker or agent who knowingly provides false information that influences a buyer’s decision may be held liable under the DTPA.
Economic Damages in a DTPA Lawsuit
Consumers who successfully bring a DTPA claim can recover economic damages. These damages compensate for financial losses related to the fraudulent transaction, including repair costs and diminished property value.
Additionally, if a defendant acted knowingly, the consumer may recover mental anguish damages and up to three times the amount of economic damages Tex. Mut. Ins. Co. v. Morris, 2008 Tex. App. LEXIS 7180. This provision serves to deter fraudulent practices and ensure consumers receive fair compensation for their losses.
Legal Recourse for Affected Consumers
The DTPA provides a cause of action for consumers who suffer harm due to false, misleading, or deceptive acts Morales v. 6800 Southwest Freeway, Inc., 2013 Tex. App. LEXIS 9789; Zhaohong Wu v. Lumber Liquidators, Inc., 2024 Tex. App. LEXIS 4378.
To establish a DTPA claim, the plaintiff must prove:
- They qualify as a consumer under the DTPA.
- The defendant engaged in a deceptive act or misrepresentation.
- The consumer relied on the deceptive act.
- The deceptive act was a producing cause of the consumer’s damages Lonis v. Walton, 2023 Tex. App. LEXIS 7333.
The DTPA is liberally construed to favor consumer protection. Courts interpret the law in a way that ensures consumers have accessible legal remedies against deceptive real estate practices. This broad application strengthens legal protections and holds dishonest sellers and brokers accountable.
Protecting Yourself from Real Estate Fraud
To reduce the risk of falling victim to real estate fraud:
- Verify property details through independent inspections and appraisals.
- Request written disclosures and retain all transaction documents.
- Consult a real estate attorney before finalizing any major real estate purchase.
If you suspect misrepresentation in a real estate transaction, legal action under the DTPA can help recover damages and prevent further deceptive practices in the industry.
Conclusion
The Texas Deceptive Trade Practices Act (DTPA) serves as a powerful tool to combat real estate fraud. Consumers who recognize fraudulent misrepresentations, understand their rights under the law, and pursue legal action can protect themselves and hold wrongdoers accountable.
If you believe you have been a victim of real estate fraud, The Woodlands Law Firm is here to help. Contact us at (832) 626-0116 or schedule a free 15-minute consultation at https://woodlandslaw.cliogrow.com/book to discuss your case with an experienced attorney.
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