Question

The owner tells the broker that there is a sewer on the property. A buyer purchases the property and discovers a septic tank on the property. Who is liable? Select one:

a. The seller only
b. The broker only
c. The buyer
d. There is no liability

Answer 1

Liability can fall on either the seller or the broker if there was intentional misrepresentation or failure to disclose the septic tank. However, the buyer must also practice due diligence and might share responsibility.

Step-by-step explanation:

When the owner informs the broker of a sewer system on the property, but the buyer discovers a septic tank instead, this situation generally involves issues of real estate disclosure and misrepresentation. In real estate transactions, sellers have a legal obligation to disclose certain information about the property, including the nature of its waste disposal system. If the seller intentionally misleads the buyer or fails to disclose a material fact that they were aware of, which in this case is the presence of a septic system instead of a sewer, the seller could be held liable for misrepresentation. The broker could also be held liable if they knew about the discrepancy and did not disclose it to the buyer. However, the buyer may also bear some responsibility if they failed to exercise due diligence.