All of the following may be consequences or theories of liability arising from nondisclosure EXCEPT
Correct Answer
D) Automatic revocation of the broker's license on a complaint
Nondisclosure of a known material fact exposes a seller or a licensee to civil liability on several theories, from intentional concealment to a negligent failure to disclose what a reasonably competent licensee would have revealed, and the buyer may recover damages or rescind. Discipline against a license is also possible, but it is neither automatic nor accomplished by the filing of a complaint: the licensing agency investigates, and suspension or revocation can follow only after an administrative proceeding with notice and an opportunity to be heard. Treating a complaint as self-executing discipline confuses the civil track with the regulatory one.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
More Property Disclosures Questions
A seller who fails to provide required disclosures may be liable for:
HOA disclosure requirements typically include:
Potential buyers lose interest in a house because local media repeatedly called it haunted even though inspections reveal no physical problem. What issue is this?
A seller knows that a prior occupant died peacefully in the home several years ago, and there is no physical defect. Which special disclosure issue is presented?
The doctrine of 'caveat emptor' (buyer beware) has been largely replaced by:
- → In a state that requires a written disclosure of a home's condition to the buyer, the disclosure form is filled out by:
- → Under TRID, the Loan Estimate replaced which older disclosure form that was previously provided to borrowers early in the loan process?
- → The Closing Disclosure must be received by the borrower at least three business days before closing. If closing is scheduled for Friday and no federal holiday falls during that week, when is the latest the borrower can receive the Closing Disclosure?
- → The Closing Disclosure replaced which two older disclosure forms that were previously used in residential mortgage transactions?
- → Under TRID, all of the following are included on Page 1 of the Loan Estimate EXCEPT.
- → A borrower compares the Loan Estimate with the Closing Disclosure and sees that government recording fees rose from $350 to $400. Under the TRID tolerance rules, is that increase permitted?
- → A borrower receives a Loan Estimate and notices that the estimated title insurance fee is $1,200. At closing, the Closing Disclosure shows the title insurance fee is $1,400. The borrower was allowed to shop for title insurance from a list provided by the lender. Under TRID tolerance rules, is this increase permissible?
- → A lender's origination charge on the Loan Estimate is $2,000. At closing, the origination charge on the Closing Disclosure is $2,300. Under TRID, what must the lender do?
- → A borrower submits a mortgage loan application on Monday. Under TRID, by when must the lender provide the Loan Estimate?
- → The Closing Disclosure includes a section showing how much total interest the borrower will pay over the life of the loan. A borrower sees that for a $300,000 30-year fixed-rate loan at 6.5 percent, the total interest exceeds $382,000. What purpose does this disclosure serve?
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Previous Question
A seller knows that the basement of his home floods every spring, but when his buyer asks during negotiations he answers 'the basement has never had any water issues.' The buyer relies on that representation in deciding to close at full price. After the first spring rain following closing, the basement floods and causes $30,000 in damage. The buyer's lawsuit emphasizes that the seller knew the truth, deliberately misstated a material physical condition, intended to induce reliance, and that the buyer in fact relied to her detriment. Which legal theory most directly fits the seller's conduct?
Next Question
Which of the following is NOT a remedy the buyer can obtain against the seller for a serious disclosure violation?