Final answer:
A seller or agent is not liable for errors in a Natural Hazard Disclosure Statement if made in good faith without gross negligence. They are protected if they rely on official sources and do not intentionally mislead the buyer. Gross negligence or willful misrepresentation, however, can lead to liability.
Step-by-step explanation:
Neither a seller nor any agent is liable for the erroneous preparation of a Natural Hazard Disclosure Statement they have delivered to a buyer when the error was made in good faith without gross negligence. In the real estate industry, a Natural Hazard Disclosure Statement is a document provided by the seller of a property, indicating whether the property is located in an area with potential natural hazards. The liability protection generally applies when the seller or agent has relied on information from official government sources or other authoritative reports and has not intentionally misled the buyer.
In practice, the seller and their agent are expected to exercise due diligence in reviewing and preparing these statements. If they can demonstrate that they have made good faith efforts to accurately complete the disclosure based on the best available information, they are typically protected from liability stemming from unintentional errors in the disclosure. Nevertheless, gross negligence or willful misrepresentation can void this protection and result in liability.