Question

Cody bought a house in the fall which was found to have a leaky roof during the following spring's rainstorms. The sellers had discussed the roof leaks with the transaction broker, but the transaction broker decided not to divulge those details to Cody and now claims Cody did not specifically ask about the roof. Which is TRUE?

a) The transaction broker acted ethically by not disclosing the information.
b) Cody is entitled to damages due to the transaction broker's omission.
c) Cody should have obtained a home inspection to uncover the roof issues.
d) The sellers are solely responsible for disclosing the roof leaks.

Answer 1

Cody is entitled to damages due to the transaction broker's omission.

Step-by-step explanation:

The correct answer is b) Cody is entitled to damages due to the transaction broker's omission.

In the given scenario, the transaction broker had knowledge of the roof leaks but chose not to disclose it to Cody, the buyer.

The duty of a transaction broker is to act in the best interest of both parties, which includes disclosing any known material defects or issues with the property. Failing to disclose such information can lead to legal consequences.

In this case, Cody should be entitled to damages because the transaction broker's omission deprived him of the opportunity to make an informed decision about the purchase. Therefore, Cody can seek compensation for any financial losses or damages caused by the leaky roof.