Broker Liability for Misrepresentation

Cases and Lessons from Wisconsin Courts provided by the WRA in the October 2016 issue of The Wisconsin Real Estate Magazine could keep you out of harms way.  Intentional fraud is one way to be found liable but deception is not required to be liable.  Being negligent  or failing the expectation of strict responsibility (A licensee is expected to know better or the law was specific in my obligation and I failed to be responsible) will put us on the wrong side of liability just as well.

If it hasn’t happened yet, it will happen where an owner balks at disclosing and asks you for your advice on disclosure.  Case Study #1 in the feature article makes it clear and simple—Disclosure is the way to go.  Case Study #2 we see too much of. As-is is no protection for seller or brokers. There  is no way to wash hands of liability for saying take it as is when an adverse fact is known.

The WRA legal division has a finger on the pulse of Wisconsin real estate law issues. Take time to read their Cases and adopt their advice. Maybe share the Case Studies with your clients.  You will never regret disclosure.

Author: Tom Meyer Real Estate Broker, Madison, WI

I believe every every Offer to Purchase can present the unique ability of the person the contract is written for. The person who is most compelled to be cooperative, most qualified, most sincere, most committed, least risk adverse, can have an Offer drafted to show their true ability and commitment. Home sellers are likely to look favorably upon those offers which give them the most comfort. Licensees who know how to craft Offers as unique as the individual buyer are worth their weight in gold.

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