Question

For which of the following statements would a broker not likely be held liable in the sale of a $1,000,000 house?

Option 1: The broker failed to disclose a major structural issue with the house.
Option 2: The broker misrepresented the square footage of the house.
Option 3: The broker did not provide a home inspection report to the buyer.
Option 4: The broker informed the buyer about the property's history of flooding.

Answer 1

In the sale of a $1,000,000 house, a broker would not likely be held liable for informing the buyer about the property's history of flooding.

Step-by-step explanation:

In the sale of a $1,000,000 house, a broker would not likely be held liable for Option 4: The broker informed the buyer about the property's history of flooding.

Brokers have a duty to disclose material defects or issues with a property, such as major structural issues or misrepresentation of square footage. They are also expected to provide important documents like home inspection reports to the buyer. However, in this case, the broker has fulfilled their obligation by informing the buyer about the property's history of flooding, which is a relevant factor for the buyer to consider.

Therefore, Option 4 is the statement for which the broker would not likely be held liable in the sale of the house.