A licensee who knowingly conceals a material defect from a buyer may be liable for which of the following?
Correct Answer
B) Fraudulent misrepresentation
Under Montana law, a licensee who knowingly conceals a material defect commits fraudulent misrepresentation. This can result in serious consequences including license revocation or suspension by the Montana Board of Realty Regulation, civil liability to the buyer for damages, and potential criminal penalties. Montana's disclosure requirements obligate licensees to disclose all known material defects affecting the property.
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Related Topics & Key Terms
Related Topics:
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Related Concepts
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
More Mandated Disclosures Questions
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A Vermont licensee is asked about a seller's agent knows a serious property defect or limitation. What is the best answer?
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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?
- → In Vermont, the property is subject to a right of first refusal. Which statement is correct?
- → A Vermont licensee is asked about unpermitted construction or septic work affects a Vermont property. What is the best answer?
- → 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?
- → In Oklahoma real estate practice, a seller has not yet accepted a purchaser’s offer. What should the licensee remember?
- → For the Oklahoma salesperson state portion, a disclosure statement is delivered after an offer to purchase has been made. Which statement is correct?
- → Which Oklahoma rule applies when a real estate licensee actually knows of a property defect that is not included in the seller’s disclosure statement?
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