Connecticut broker Ellen represents seller Tom. Tom instructs Ellen to tell all prospective buyers that the property has never had a pest infestation, even though Tom has told Ellen privately that there was a termite treatment three years ago. Ellen follows Tom's instruction and tells a buyer there has been no pest history. Under Connecticut agency law, which statement is most accurate?
Correct Answer
B) Ellen violated her duty to the buyer by making a misrepresentation, and following an unlawful instruction is not protected by the duty of obedience
Ellen violated her duty by making a misrepresentation, and the duty of obedience does not protect licensees who follow unlawful instructions. Under Connecticut agency law, a licensee must follow the client's lawful instructions, but an instruction to make a false statement to a buyer is not lawful. Making a knowing misrepresentation about a material fact — such as prior termite infestation — exposes Ellen to liability under CUTPA (CGS § 42-110a), CGS Chapter 392 disciplinary action, and potential civil liability. The duty of obedience never requires a licensee to engage in fraud or misrepresentation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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