Question

Thomas is a commercial broker. He is representing the buyer in the purchase of an apartment complex in Dallas. Thomas also represents the seller. Both have authorized intermediary. The seller's attorney discloses to Thomas via email that the property has foundation issues but offers to increase Thomas' commission if Thomas doesn't tell the buyer. Thomas tells the buyer that there are no problems with the property, and the buyer ends up purchasing the property unaware of the foundation problems. Will Thomas likely be liable to the buyer for fraud

Answer 1

Yes,it is a classic case of fraud as Thomas owes the buyer a duty of disclosure of material facts

Step-by-step explanation:

Fraud

This is simply defined as act of deception. It is an act carried intentional by an individual to get an unfair advantage over another person.

The deceptive trade practices act

This is simply a federal law set up by government. It watches over business, making sure that fraud and misrepresentation do not take place when companies provide products and services.

In real estate, the seller required to tell the buyer about the property's condition and nothing should be left Thomas is guilty of fraud for covering up and not disclosing all conditions or state of the property.

The tests for disclosure outlined by the courts includes

1. The seller must not obstruct the buyer's attempts to inspect the property. The "as is" clause must be an important element of the contract.

2. The buyer and seller must not be in a relatively unequal bargaining position

All known defects must be disclosed by the seller