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May 21, 2013
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Law & Ethics: In Court Articles

  • Broker Liable for Salesperson's Failure to Fully Disclose
    Tue, 04/01/2003

    The court based its decision on an assessment of the salesperson’s status as an independent contractor, finding that some policies of the company qualified the salesperson as an employee.

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  • Supreme Court Rules Broker Not Personally Liable
    Sat, 03/01/2003

    In a reversal of a decision by the Ninth Circuit Court of Appeals, the U.S. Supreme Court unanimously ruled that an owner or officer of a real estate corporation isn't personally liable for violations of federal fair housing laws by an agent or employee except under certain circumstances. However, the high court did state that under legal principles of vicarious liability, the corporation itself could be held liable for an employee or agent's actions.

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  • Verdict Reduced in Landmark Mold Case
    Sat, 02/01/2003

    A Texas appellate court has decided in favor of a challenge by the insurance company and reduced a jury verdict that awarded over $32 million dollars to homeowners whose house had become uninhabitable because of mold. The court affirmed the trial court’s award of approximately $4 million in actual damages to the 7,400 square foot home, plus interest, but found that the evidence didn't support the additional awards.

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  • License Cannot be Revoked for Unrelated Crimes
    Wed, 01/01/2003

    Oregon’s highest court has decided that the state’s real estate commission couldn't declare a broker untrustworthy and revoke his license when he was found guilty of crimes that didn't directly relate to licensed real estate activity.

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  • Dual Agent Breaches Fiduciary Duty by Informing Only One Client
    Wed, 01/01/2003

    Prospective homebuyers in Mississippi received a property condition disclosure statement that revealed prior termite damage.

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  • Court Dismisses Lawsuit over Fraud Relating to Water Damage
    Sun, 12/01/2002

    A New York court found neither the broker, home inspector, or sellers were guilty of fraud or negligent misrepresentation for failing to warn buyers of past water damage to a property. Several factors contributed to the decision.

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  • Seller Can't Allege Broker Fraud When Only Remedy Sought was to Rescind Sale
    Sun, 12/01/2002

    A court ruled that a radon test comment didn’t constitute fraud because the statement was made after the purchase agreement was signed, and thus the seller couldn’t have relied on this information in deciding to accept the offer.

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  • Fair Housing Act Doesn't Require Economic Accommodations for Disabled Tenants
    Fri, 11/01/2002

    U.S. District Court Southern District of New York agreed with the landlord, ruling that the Act doesn’t require the “alleviation of economic disadvantages that may be correlated with having handicaps.”

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  • Salesperson Not Liable for Misrepresentation
    Fri, 11/01/2002

    The court also ruled that the sellers weren’t liable because the contract stated that the buyer hadn’t relied on any representations when deciding to buy the property and had had a chance to fully inspect the property.

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  • Montana Court Slams Broker
    Sun, 04/01/2001

    In affirming a lower court’s decision, the Montana Supreme Court ruled that Larry Lee, a broker with Kalispell Century 21 in Kalispell, Mont., willfully violated discovery orders by the state trial court.

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