James has entered a contract to sell his house to Mikhael. James knows that the house has a bad termite infestation that significantly reduces the value of the house, So, he decides to cover up the problem with plaster. The topic of termites never came up and James did not volunteer any information about the termites. Mikhael is not aware of the termite problem. Under the law of most states. has legal misrepresentation occurred here?

No because James made no statement that was false.

No because a seller does not have a duty to reveal all faults.

Yes because a seller must always inform a buver about defects that are not obvious.

Yes because James is concealing the termite infestation from Mikhael.