Licensee Greg in St. George, Utah is working with seller Fran to list her home. During the listing appointment, Fran mentions that her neighbor told her the home's roof was replaced five years ago, but Fran has no documentation and has never personally verified this. Greg includes the roof replacement date in the MLS listing as a fact. The buyer later discovers the roof is actually twelve years old. What is Greg's most likely violation under Utah agency law?
Correct Answer
B) Breach of the duty of disclosure by failing to verify material information before representing it as fact
Under Utah Code Ann. § 61-2f and R162-2f, licensees have a duty to disclose accurate material information and must not misrepresent facts about a property. Greg's duty of disclosure and honesty requires him to either verify the roof replacement date before representing it as fact or disclose that the information is unverified. Presenting unverified hearsay as established fact in the MLS constitutes a misrepresentation, violating his duty of disclosure and potentially the Utah Seller Disclosure Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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