A listing agent fails to disclose a known drainage problem because the agent forgot to include it on the disclosure form. The buyer purchases the property and discovers flooding after the first heavy rain. What liability theory applies to the agent?
Correct Answer
C) Negligent misrepresentation or nondisclosure
Negligent misrepresentation or nondisclosure applies when an agent carelessly fails to provide accurate material information. Forgetting to include known drainage problems shows carelessness rather than intentional deceit.
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