medium · National Real Estate Exam disclosures

Under the doctrine of vicarious liability, can the seller be sued for fraud?

1. Yes, because the agent's knowledge is imputed to the seller, so the seller's silence is legally considered an intentional concealment of a known defect.
2. Yes, but only if the property was sold in a state that strictly follows the traditional common-law doctrine of caveat emptor between private parties.
3. No, because fraud requires proof of 'intent,' and an uninformed seller cannot personally have formed any intent to deceive the buyer at the time of the sale.
4. No, under these facts the buyer can only sue the seller for negligent misrepresentation rather than for intentional common-law fraud in most state jurisdictions.

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