Question

A recent buyer is making a claim of misrepresentation because the property taxes on his newly purchased home are far higher than was disclosed by the seller. Could the broker be liable on this claim?

A) No, because taxes are required on all properties and are not considered damages.
B) Yes, brokers are liable in all cases of damages, regardless of the cause.
C) No, because the seller has responsibility for making accurate tax disclosures.
D) Yes, the broker cannot claim that she merely passed along information from the seller.

Answer 1

The broker may not be liable for misrepresentation of property taxes if they were not aware of the inaccuracy and relied on the seller's disclosure, as the responsibility to disclose correct information resides primarily with the seller.

Step-by-step explanation:

In the scenario where a recent buyer is making a claim of misrepresentation due to higher property taxes than disclosed by the seller, the liability of the broker depends on various factors, including state laws and the specific details of the transaction. However, the most applicable answer here is that it's the seller's primary responsibility to make accurate disclosures.

Therefore, the broker may not be liable if they did not have knowledge of the misrepresentation and were relying on the seller's information. Choice C is the correct answer: No, because the seller has responsibility for making accurate tax disclosures. If the broker knowingly passed along false information, then the situation could be different, but simply acting as an intermediary does not inherently make the broker liable for the seller's misrepresentation.