What is true regarding Broker A, Seller B, and Buyer C, when Broker A lies to Buyer C about the property condition?

In the context of real estate transactions, when a broker knowingly provides false information to a buyer about a property's condition, both the broker and the seller may be held liable for any resulting damages. This stems from the broker's role as an agent and the responsibility to represent the seller's interests honestly while also fulfilling a duty of good faith to the buyer.

When Broker A lies to Buyer C, Buyer C relies on that misleading information to make a purchasing decision. The broker's misrepresentation can lead to legal action against both the broker and the seller. The seller may be held liable for the broker's actions, especially if the broker was acting within the scope of their authority and if the seller was aware of the misrepresentation or failed to disclose critical information about the property condition. Additionally, real estate laws often impose a duty on sellers to disclose known defects or issues with properties.

This shared liability serves to protect buyers from fraudulent practices, ensuring that they can seek redress when harmed by false statements made during the sales process. Thus, the correct answer highlights the principle of shared responsibility among the broker and the seller when deception occurs in the transaction.