Agency
A Texas agent who earns a commission discovers after closing that the seller fraudulently misrepresented the property. The agent:
AHas no liability since they relied on the seller's representations
BMay have liability if they knew or should have known about the misrepresentation and did not disclose it✓ Correct
CIs automatically liable for the full purchase price
DCan keep the commission since the transaction closed
Explanation
An agent may have liability for misrepresentations made by their client if they knew or should have known about the false information and had a duty to disclose it. Agents cannot turn a blind eye to obvious misrepresentations by their clients.
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