A seller intentionally paints over mold damage in the bathroom and states on the disclosure form that no mold has ever been present. The buyer later discovers extensive mold. What claim does the buyer most likely have?
Correct Answer
D) Fraud
Fraud is correct because the seller intentionally concealed a material fact and made a false written statement to induce the buyer's reliance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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A listing agreement creates an agency relationship between:
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A property management agreement between an owner and a property manager typically specifies which of the following?
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- → A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
- → A property manager receives a maintenance request from a tenant who reports a broken heater during winter. The property manager delays the repair for three weeks, and the tenant suffers property damage from frozen pipes. Who may be liable for the damages?
- → A real estate team consists of a team leader (licensed broker) and three licensed sales agents. A buyer contacts one of the team agents about a listing held by another team agent. What agency concern arises in this situation?
- → A property management company manages several apartment complexes. All of the following are typical duties of a property manager EXCEPT.
- → A real estate team is advertising its services. All of the following are generally required when a team advertises EXCEPT.
- → A commercial broker represents a landlord in leasing office space. During negotiations, the tenant discloses to the broker that she would pay up to $35 per square foot, even though the listed rate is $30. What must the broker do with this information?
- → A commercial property owner hires a broker to find a tenant for a 50,000 square-foot warehouse. The broker locates a suitable tenant and negotiates a 10-year lease. The owner pays the broker a commission based on the total lease value. What type of agency did the broker hold?
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A commercial property manager is responsible for operating a shopping center. The manager must prepare an annual operating budget, negotiate vendor contracts, and handle tenant relations. In addition to management fees, the owner authorizes the manager to earn a leasing commission for each new tenant the manager brings in. Is this compensation structure permissible?
- → A property owner hires a licensed property manager to handle tenant screening, rent collection, and maintenance for a 20-unit apartment building. What type of agency relationship exists between the owner and the property manager?
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