A seller in Long Island provides the $500 credit but the buyer later discovers undisclosed foundation issues that cost $8,000 to repair. The buyer claims the seller should have disclosed this known defect. What is the legal significance of the $500 credit in this situation?
Correct Answer
B) The credit satisfies disclosure requirements but does not protect against fraud or intentional misrepresentation
The $500 credit satisfies the Property Condition Disclosure Act requirements, but it does not shield sellers from liability for fraud, intentional misrepresentation, or failure to disclose known material defects. If the seller knew about the foundation issues and intentionally concealed them, they may still be liable despite providing the credit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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.
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- → Under New York's agency disclosure law, which of the following constitutes 'first substantive contact' that would trigger the disclosure requirement?
- → Under NY Real Property Law §443, at what point must a real estate agent provide the agency disclosure form to a prospective buyer during an initial property visit?
- → A seller's agent learns that a comparable property nearby recently sold for significantly below the seller client's asking price after a deal collapsed. The seller has not yet asked about recent comparable sales. What is the agent's obligation regarding this information?
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- → In a New York disclosed dual agency transaction, the seller asks the dual agent: 'What is the lowest price I should accept for this property?' How must the dual agent respond?
- → In New York, what happens if a broker acts as a dual agent without obtaining proper written consent from both parties?
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