Question

Broker Jamie had been representing Buyer Kendra for two months when he finally found a suitable property for her. Buyer Kendra agreed to purchase this property, and presented an offer of $80,000, which was $10,000 less than the listing price. The seller (Seller Langdon) agreed, and they proceeded towards closing.At closing, however, the transaction fell through. It was discovered that there were several liens on the property, and the property could not be sold. Seller Langdon was aware of the liens but had thought he would be able to clear them before the date of closing. He had kept this information hidden from his broker, Broker Mandi.

Buyer Kendra is very upset about this issue and wants to file a lawsuit. So, which party is liable?

Answer 1

Seller Langdon is potentially liable for not disclosing the liens, which may constitute fraudulent or negligent misrepresentation. The specifics of liability depend on contract details and local laws. Kendra should seek legal advice to determine the best course of action.

Step-by-step explanation:

In the scenario presented, Seller Langdon may be liable for failing to disclose the liens on the property to Buyer Kendra. When Seller Langdon became aware of the liens, he had a duty to inform his broker, Broker Mandi, and the buyer. The failure to do so could constitute fraudulent or negligent misrepresentation, making him potentially responsible for damages suffered by Kendra because of the transaction falling through. It should be noted that the specifics of liability can vary depending on the details of the contract and local laws, so it is essential for Buyer Kendra to consult with a legal professional to explore her options.