Articles on “Fraud”

A LISTING AGENT IS NOT LIABLE TO THE BUYER FOR MAKING A STATEMENT OF FACT REGARDING THE PROPERTY THAT IS ACCURATE BUT OUTDATED. THE SELLING AGENT IS LIABLE FOR FAILING TO EXPLAIN IT.

Monday, April 21st, 2014

The buyer of an undeveloped parcel of real estate sued the seller, listing agent and listing broker when he discovered that the property he purchased was unbuildable even though the MLS description written by the listing agent stated a geologist report concluded it was buildable.  The listing agent failed to disclose in the MLS that the geologist report was 25 years old and outdated.  The court ruled that the seller and listing agent were not liable because the MLS statement was factually accurate.  However the selling agent was found liable because he failed to review the report and failed to inform his buyer the report was unreliable.Saffie v. Schmeling (2014) 224 Cal.App.4th 563

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DRE TAKES ACTION AGAINST BROKER FOUND LIABLE FOR FRAUD IN MISREPRESENTING THE SQUARE FOOTAGE OF A RESIDENCE

Tuesday, July 12th, 2011

Where a civil judgment for fraud based on misrepresentation of the square footage of a residence was entered in favor of a buyer against his real estate broker the broker’s real estate license may not be suspended by the Department of Real Estate unless the judgment is based on “clear and convincing” proof of fraud. Grubb Company Inc. v. Department of Real Estate 194 CA 4th 1494 (2011).

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CONTRACT LANGUAGE ADVISING BUYER TO INVESTIGATE CONDITION OF PROPERTY BEFORE RELYING UPON AGENT’S STATEMENTS DOES NOT PROTECT AGENT FROM LIABILITY

Saturday, June 26th, 2010

SUMMARY: The California Court of Appeal for the Fourth District on January 24, 2007 ruled that a real estate broker can be liable for fraud by telling the buyers that the County told him the property could be subdivided when in fact the property could not be subdivided. Manderville v. PCG&S Group Inc.   146 CA4th 1486 (2007)

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