1151 Law of Agency - Lesson 9

All fo the following are duties that the principal owes the agent EXCEPT:

Obedience

Salesperson B represents Seller A. When conducting a tour of the property, Salesperson B notices that the first-floor ceiling is dripping in a corner of a closet, probably from a leaky pipe. He asks Seller A about the drip, and Seller A insists that there is no problem. Seller A does not include any statements about leaky pipes of plumbing problems on the Seller's Disclosure Form. Salesperson B decides that since Seller A insists that there is not problem, he has no obligation as the agent to disclose the drip to potential buyers. Buyer C purchases the property, and after the transaction closes, she notices the drip, which she eventually learns is the result of a broken pipe. She then sends a letter of impending lawsuit to the office of Salesperson B. Which party or parties are probably liable in this situation?

The seller, the salesperson, and the salesperson's supervising broker.

In addition to his or her own actions, the broker also is generally responsible for the actions of:

All parties involved in a transaction