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A seller of property tells their broker the house is connected to the sewer. The broker relays this information to a buyer, who later finds that the house has a septic system in need of repair. The buyer would sue:

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Question & Answer

Review the question and all answer choices

A

the broker and the seller.

Option A is incorrect because while the seller may have misrepresented the property's sewer system, the broker's liability depends on their knowledge and disclosure obligations. If the broker was unaware of the septic system issue and relied on the seller's information, they might not be held liable. The question focuses on the broker's potential negligence, not automatic joint liability.

B

no one, as they should have checke

The buyer can sue someone because the broker had a duty to verify the information provided by the seller. It's not the buyer's responsibility to verify every statement made by the broker during a transaction.

C

the broker only.

Correct Answer
D

d. the owner only.

The buyer would not sue only the owner because while the seller provided false information, the broker repeated it without verification. Brokers have independent duties and can be held liable for their own negligence in verifying material facts.

Why is this correct?

The buyer would sue the broker only because the broker repeated the seller's false statement without verification. Brokers have a duty to exercise reasonable care and verify material facts, especially those affecting property value and functionality. By relaying unconfirmed information, the broker potentially breached this duty.

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