I don't know how long the problem has existed. The vehicle was purchased a couple of weeks ago. It has approx. 62k and is real clean. The inaccuracy is a significant amount, as in within a 100 miles it is indicating a half of tank. What do you think?
Sounds like you don't yet have enough data to make a determination. Run it from topped (first click) to precisely half, and record how many gallons it takes to top off (same pump if possible) again. Given that the Element's tank holds about 16 gallons, and taking into account a generous reserve, I'd guess it should take about 7 gallons.
Meanwhile, calculating your mpg (averaged over several tanks) should give you an idea of how many miles to expect from a half tank.
Gas guage is not remotely close to accurate. I filled the vehicle up to one click the gas guage never read past 3/4 of a tank. I do not drive this vehicle so I'm trying to trouble shoot it from a distance. I can tell you that the gas guage is obviously faulty. Back to the question of does the fuel sending unit need to be replaced?
Welcome to the club and most likely the sender in the tank is bad. For now fill it up until the nozzle clicks off and it should be over 13 gallons and if the sender is bad there is a cover for it behind the drivers seat and the floor mat will have to be pulled up to get to it. I think the whole pump and sender unit has to be replaced at the same time.