A Missouri listing broker knows that a residential property's septic system failed a municipal inspection six months ago and that the seller chose not to repair it. The broker does not include this information in the MLS listing and does not disclose it to any prospective buyers. The seller has signed a seller disclosure form that omits the septic failure. A buyer purchases the property, and the septic system fails completely within 30 days of closing. The buyer's attorney is evaluating claims under both the Missouri Seller Disclosure Act and the Missouri Merchandising Practices Act. Which of the following statements MOST accurately describes how the two statutes interact in this situation?
Correct Answer
C) The Seller Disclosure Act imposes disclosure duties primarily on the seller, while the MMPA may independently impose liability on the broker for concealing a material defect, and both claims can proceed simultaneously.
The Missouri Seller Disclosure Act, RSMo § 339.730 et seq., imposes the primary disclosure obligation on the seller of residential property (1-4 units) to complete a written disclosure statement revealing known material defects. However, the Missouri Merchandising Practices Act, RSMo § 407.010 et seq., independently prohibits deceptive, unfair, or misleading practices by any party in connection with a real estate sale—including a listing broker who knowingly conceals a material defect from buyers. Because the MMPA creates civil liability independent of other statutes and is not limited to sellers, the broker's active concealment of the known septic failure can give rise to a separate MMPA claim even while the seller faces liability under the Seller Disclosure Act. Both claims can proceed simultaneously because they arise from different statutory duties imposed on different parties.
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Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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