False Advertising | Propertylogy

False Advertising

By on November 9, 2019

False advertising is a generic term that refers to advertising and marketing collateral that contains blatantly false information or makes misleading statements.

Because of how difficult it is to regulate the real estate industry due to the various gray areas, false advertising is rife in real estate, and has been for some time.

For example, new home sales events can often claim that a high percentage of units have been sold (e.g. 90%) but in reality it only refers to the made available on a particular day, or on one of the many sales phase of sales events. This can create a higher buying temperature as prospective home buyers make purchase decision in part with the fear of missing out.

Another cringe-worthy example might be that an advert states that terrace house sits on freehold land. But it does not say that the house property in question is on leasehold even though it sits on freehold land.

When false advertising is proven, then it can be grounds for rescission, cancellation of a sales contract, and even be a basis for legal action to obtain damages suffered.

In some cases, it can also be classified as fraud.

Real estate agents are held responsible for misleading advertising can can have their license suspended when found guilty.

Serious cases can even find them being prosecuted.

But again, because of the various gray areas in real estate, people who practice false advertising can often get away from serious punishment by arguing that genuine mistakes were made instead of an intention to deceive.

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