A licensee who deliberately hides a known material defect from a buyer is guilty of which of the following?
Correct Answer
B) Fraudulent misrepresentation
Under Delaware law (24 Del. C. Ch. 29) and the Delaware Seller Disclosure of Real Property Condition Act, a licensee who knowingly conceals a material defect from a buyer commits fraudulent misrepresentation. This can result in license suspension or revocation, civil liability, and potentially criminal penalties. Silence or concealment of a known material defect is never acceptable conduct for a licensee.
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Related Topics & Key Terms
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Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
More Mandated Disclosures Questions
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In Vermont, a seller's agent knows a serious property defect or limitation. Which statement is correct?
- → In Vermont, covered pre-1978 property is shown to a buyer. Which statement is correct?
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- → An Oklahoma licensee is asked about a seller learns of a new defect after already delivering a disclosure or disclaimer statement. What is the best answer?
- → Which Oklahoma rule applies when a seller wants to use the Oklahoma disclaimer statement instead of a disclosure statement?
- → An Oklahoma licensee is asked about a seller of covered Oklahoma residential property is preparing for a buyer’s offer. What is the best answer?
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A buyer is considering purchasing a coastal property in Alaska located within a known tsunami inundation zone. Under Alaska's disclosure obligations, how should a licensee handle this information?
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A licensee who knowingly conceals a material defect from a buyer may be liable for which of the following?