Real Estate Broker Liable for Seller’s Non-Disclosure of Defects where Seller was also a Real Estate Associate

Our firm has tried cases involving the seller of a home’s failure to disclose defects known to the seller but unknown to the buyer.  The recent case of Batya Goodman v Rose Realty West, Inc., 41 Fla. Law Weekly D1135 (Fla. 4th DCA May 11, 2016), is of interest because, in that case, the seller was also a real estate sales associate working on behalf of the broker.  The seller/sales associate failed to disclose to the buyer material defects that impaired the value of the home.  The Fourth District Court of Appeal determined that the sales associate’s real estate broker was vicariously liable for the seller/sales associate’s fraudulent conduct because that person was “motivated, at least in part, by a purpose to serve the” real estate brokerage.  In other words, a seller who is also working as her own sales associate my create liability for her broker in addition to her own personal liability for failing to disclose known defects to a home buyer.  

This article does not constitute legal advice or the formation of an attorney-client relationship, and is not for re-publication without express permission of the author.