What is true regarding the liability of Seller A and Broker B when a leaky roof is not disclosed?

When it comes to the liability of Seller A and Broker B concerning the non-disclosure of a leaky roof, it is essential to understand the responsibilities of both parties in a real estate transaction.

In California, the seller has a legal obligation to disclose known material defects in the property to the buyer. A leaky roof is considered a material defect, as it can significantly affect the property's value and the buyer's decision to purchase. Therefore, Seller A can be held liable for failing to disclose this defect.

On the other hand, Broker B also has a duty to represent the interests of the buyer and to disclose material facts that they are aware of. If Broker B is aware of the leaky roof and fails to inform the buyer, they can be held liable for negligence or misrepresentation. Real estate brokers are often required to conduct a reasonable inspection and to disclose any issues they discover.

Because both the seller has a clear duty to disclose known issues and the broker has a liability to ensure that buyers are aware of significant defects, both Seller A and Broker B can be held liable for the non-disclosure of the leaky roof. This dual liability reflects the collaborative requirement for transparency and honesty in real estate transactions, reaffirming the principle that both parties