A buyer, Marcus, purchases a residential property in Baton Rouge. After closing, Marcus discovers that the seller, Patricia, had known about chronic basement flooding but intentionally omitted it from the Property Disclosure Document. Patricia's listing agent, Kevin, was also aware of the flooding issue but said nothing. Under Louisiana law, which of the following best describes the potential liability of Patricia and Kevin?
Correct Answer
B) Patricia may face civil liability for misrepresentation, and Kevin may face LREC disciplinary action and civil liability for failing to disclose a known material fact
Under La. R.S. 9:3196 et seq., a seller who intentionally misrepresents or omits known defects on the Property Disclosure Document may face civil liability for redhibition (hidden defects) or misrepresentation under Louisiana law. Separately, LREC regulations impose an independent duty on licensees to disclose known material facts to all parties. Kevin's knowing concealment of the flooding issue exposes him to LREC disciplinary action (including license suspension or revocation) and potential civil liability. Both parties bear responsibility under their respective legal obligations.
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Related Concepts
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