What occurs when a broker fails to disclose material information to a party?

When a broker fails to disclose material information to a party, it is considered concealment. This term refers to the act of purposely withholding important facts that could influence the decisions of the other party involved in a transaction. In real estate, material information could include issues with a property, financial liabilities, or regulatory concerns that could impact the buyer’s or seller's decisions.

Concealment is distinct from related concepts such as misrepresentation or fraud, as those typically involve active false statements or deceptive actions rather than just the omission of relevant information. While concealment can lead to claims of fraud if it is done with the intent to deceive, the foundational act of simply failing to disclose is best characterized as concealment.