Under Ohio law, seller's agent Monica represents seller Ivan. After closing, the buyer discovers an undisclosed underground storage tank on the property. The buyer alleges that both Ivan and Monica knew about the tank. Under Ohio law, what potential liability does Monica face?
Correct Answer
A) Potential liability for failure to disclose a known material fact, as the duty to disclose environmental hazards applies to all parties and violations may result in disciplinary action and civil liability
Under Ohio law, if Monica knew about the underground storage tank and failed to disclose it, she may face both disciplinary action from the Division of Real Estate and civil liability. The duty to disclose known material facts, especially environmental hazards, extends to all parties and survives closing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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