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May | June | 2015 CCIM.com
broker would now be the source of the infor-
mation and the statement that the parcel was
buildable would be false.
What if the listing broker knew that seis-
mic regulations had changed and that the
report was no longer reliable, could he still
disclose that the parcel had been "declared
buildable by the investigating licensed geolo-
gist" without liability? No. While the state-
ment would be technically true, it would be
nonetheless misleading as the listing broker
knew the true facts to be otherwise.
What if the listing broker had two reports
in his possession, both by licensed geologists?
One report indicates that the parcel is build-
able and the other indicates that it is not. T e
listing broker genuinely believes the former
to be more reliable and thus only discloses
that report. If the property turned out not
to be buildable, would the listing broker be
liable for not turning over the other report?
Yes. T e listing broker has an obligation to
disclose all known, material information
concerning the value or desirability of the
property. Both geological reports concerned
value and desirability and therefore both
needed to be disclosed.
Whether because perceived to have deep
pockets, known to have insurance to cover
losses, or genuinely believed to be responsi-
ble, real estate agents and brokers are almost
always brought into lawsuits when deals go
bad. While real estate agents and brokers
cannot insulate themselves from liability,
attributing the source of information is an
important measure that can be taken to limit
exposure.
Sean E. Ponist is the owner of the Law Offi ces
of Sean Ponist, P.C., a fi rm specializing in real
estate, construction, and business litigation.
Contact him at sponist@ponistlaw.com.
T e article is for informational purposes only
and not for the purpose of providing legal
advice and is not to be acted on as such.
Say This Not This
"Lot has been declared buildable by an investigating
licensed geologist in a 1982 report"
"buildable lot"
"25,000-square-foot building per plans"
or "25,000-square-foot building per assessor records"
"25,000-square-foot
building"
"Per owner, property has river frontage"
or "Per owner, property abuts the river"
"River frontage
property"
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