medium · National Real Estate Exam
A seller's agent knows that a property was previously used as a meth lab, which is a material fact. The seller does not know. The agent fails to disclose it.
Under the doctrine of vicarious liability, can the seller be sued for fraud?
- 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.
- Yes, but only if the property was sold in a state that follows caveat emptor.
- No, because fraud requires 'intent,' and an uninformed seller cannot have the intent to deceive.
- No, the buyer can only sue for 'negligent misrepresentation' against the seller, not fraud.
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