Helen is a licensed salesperson in Virginia representing a seller who has chosen to provide a disclaimer statement under the RPDA. During a showing, Helen notices what appears to be water staining on the ceiling but does not mention it to the prospective buyer. The buyer purchases the property and later discovers significant roof damage. Which of the following best describes Helen's potential exposure?
Correct Answer
A) Helen may face disciplinary action and civil liability because a licensee's duty to disclose known material adverse facts is separate from and not eliminated by the seller's disclaimer statement
Under Virginia license law (Va. Code § 54.1-2130 et seq.) and VREB regulations (18 VAC 135-20), a licensed real estate agent has an independent duty to disclose known material adverse facts about a property to all parties, regardless of whether the seller has chosen a disclaimer statement under the RPDA. The seller's disclaimer does not protect the agent from their own duty to disclose. Helen's failure to disclose the visible water staining — a potential material adverse fact — exposes her to disciplinary action by the VREB and potential civil liability.
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Related Topics & Key Terms
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Related Concepts
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