A Washington listing broker discovers during the listing period that her seller client intentionally omitted a known mold problem from Form 17. The broker is concerned about her own liability. Under Washington law, which of the following best describes the broker's obligations and potential liability in this situation?
Correct Answer
D) The broker must advise the seller to correct the disclosure and may face DOL discipline and civil liability if she knowingly participates in the misrepresentation
Under RCW 18.86 and RCW 18.85, a Washington real estate broker who discovers that a seller has intentionally omitted a known material defect from Form 17 must advise the seller to correct the disclosure. If the broker knowingly participates in or facilitates the misrepresentation by continuing to market the property without ensuring correction, the broker may face DOL disciplinary action under RCW 18.85 and civil liability under the Washington Consumer Protection Act (RCW 19.86). The broker's duty of honesty and good faith extends to all parties in the transaction.
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Related Concepts
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
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