This edition of the quarterly report analyzes legal trends in risk management areas that effect real estate professionals: Agency, PCD, RESPA, DPTA/Fraud, Section 1031 Exchanges and Ethics.
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In This Issue
Short on time? Here’s an overview of the developments covered in the Legal Pulse Newsletter for the second quarter of 2016. This summary covers Agency, Property Condition Disclosure, RESPA, Deceptive Trade Practices Act/Fraud, Section 1031 Exchanges, and Ethics issues.
The video edition of the quarterly report analyzes legal trends in risk management areas that effect real estate professionals: Agency, PCD, RESPA, DPTA/Fraud, Section 1031 Exchanges and Ethics.
In several of the cases discussed below, the court considered the extent to which a broker or seller was liable for the acts of a licensee. Generally speaking, a broker is liable for all of the licensee’s conduct within the scope of the agency relationship. In two cases this quarter, both from California, a party was found vicariously liable for another’s conduct. In one of these...
A. Cases
Most of the cases below involve allegations of the licensee’s failure to disclose water intrusion or damage. In one of those cases, the court found that the licensee could be held liable if he or she had knowledge of the water problems. Interestingly, two of the cases discussed below involve allegations against a seller who was also a licensee.
