Lisa, a Missouri real estate salesperson, represents the seller of a commercial strip mall. During negotiations, Lisa intentionally omits telling the buyer that the property has a pending environmental remediation order from the Missouri Department of Natural Resources, knowing this information would likely cause the buyer to walk away. The buyer closes on the property and later discovers the order. Under the Missouri Merchandising Practices Act, which of Lisa's actions most likely constitutes a violation?
Correct Answer
C) Intentionally concealing a material fact that would affect the buyer's decision to purchase
The Missouri Merchandising Practices Act, RSMo § 407.010 et seq., explicitly prohibits not only affirmative misrepresentations but also concealment, suppression, or omission of material facts in connection with the sale of real estate. Lisa's intentional omission of the pending environmental remediation order—a fact that would materially affect a buyer's decision—is precisely the type of deceptive concealment the MMPA is designed to prevent. This creates civil liability independent of any MREC disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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