A seller tells an agent that the furnace is 5 years old when in fact it is a well-maintained 20-year-old furnace. Who will be held liable when the truth is discovered by the purchaser after title closes?

In this scenario, the seller is the one who provided false information about the age of the furnace. The seller is primarily responsible for their own misrepresentations, as they have a duty to convey accurate details about the property to potential buyers. When a seller knowingly provides incorrect information, they may be held liable for any resulting damages or issues that arise after the sale closes.

While the agent has a role in communicating information, they often rely on the seller's disclosures and representations when providing details to potential buyers. If the agent was not aware of the true condition of the furnace and relied on the information provided by the seller, the seller's liability remains primary. It indicates that the seller bears the responsibility for the dishonesty in the transaction, making them liable to the purchaser for any misrepresentation.

This reflects the principle that individuals in a transaction are responsible for the truthfulness of their own statements. Although the agent may face repercussions in terms of professionalism or consequences from their brokerage, the seller retains the legal liability for their false disclosures.