Agency
A real estate agent who fails to disclose a known material defect to the buyer may be subject to:
AA warning from the DRE for a first offense only
BCivil liability for fraud or misrepresentation, and potential DRE disciplinary action including license revocation✓ Correct
CA fine of $500 maximum under California law
DLiability only if the buyer suffered a financial loss of more than $10,000
Explanation
An agent who conceals or fails to disclose a known material defect can face civil lawsuits for fraud, negligent misrepresentation, or breach of fiduciary duty. The DRE may also impose discipline including suspension or revocation of the license.
Related California Agency Questions
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