Agency
In New York, a seller's agent who withholds a material fact from a prospective buyer to protect the seller's interests may be liable for:
ANo liability; the agent was fulfilling their duty to the seller
BFraud by omission or fraudulent concealment, creating liability to the buyer for damages✓ Correct
COnly a minor disclosure violation with a DOS warning
DOnly liability if the buyer asks specifically about the issue
Explanation
In New York, while an agent generally owes duties to their principal, there is an obligation not to actively conceal or fraudulently misrepresent material facts to third parties (buyers). If a seller's agent knowingly conceals a material defect that they are legally required to disclose, they may be liable for fraud by omission — also called fraudulent concealment — regardless of the duty to the seller.
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