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The Real Estate Broker's Duty of Disclosure and the Associated Liability for Non-Disclosure
Two words aptly describe modern American society: consumer-oriented and litigious. Neither has a pleasant ring to the ears of real estate brokers; seventy-six percent of all cases against brokers are brought by disgruntled purchasers. In this era of consumer protectionism, brokers must be especially mindful of the duties owed not only to their clients, but also to the purchasing public. The purpose of this article is to survey the case law on the broker's duty of disclosure, briefly discussing the broker's duties to his or her principal, examining the doctrine of caveat emptor, the course of the broker's duty to disclose, the broker's duty to conduct a reasonable inspection, the purchaser's duty to inspect, conditions the courts have held to be subject to disclosure, and causes of action frequently asserted against brokers.
Index
- The Broker's duties to the principal
- Caveat Emptor: 'Let the buyer beware'
- Source of the duty to disclose
- Purchaser's duty to inspect
- Broker's duty to inspect
- Failure to disclose defects
- Exculpatory language
- Materiality (Includes stigmatized property)
- Conclusion
Published by Ohio REALTORS Legal Services Group, September, 2003