This section is from the book "Real Estate Principles And Practices", by Philip A. Benson, Nelson L. North. Also available from Amazon: Real Estate Principles and Practices.
A broker makes many statements in the course of negotiations which may be mere opinions or arguments or "sidewalk conversation." He may not, however, make misstatements of fact as to material matters, and a purchaser may disaffirm a contract induced by such misstatements. If the broker makes the misrepresentations relying on information furnished by the owner he would be entitled to his commission even though the purchaser were relieved from the contract. Unauthorized misstatements made by the broker, with similar result, will cause him to forfeit his rights, although if the fruit of the broker's work is accepted by the seller knowing of such misstatement, the broker may recover commission.
21 Mears vs. Jones, 102 Me. 490.
Misrepresentations such as will relieve a purchaser from a contract must be as to some material fact such as the size of the plot, the terms of leases or the restrictive covenants. In one case it was shown that an owner made an unintentional misrepresentation of the size of the plot. The purchaser refused to sign the contract when the real dimensions became known and the broker sued for commission. It was held that the broker was employed to sell a certain piece of property with which he was familiar, that the statement as to size by the owner was not a warranty, and that the broker could not recover a commission.22
 
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