Agency
A Washington listing broker tells a buyer that the property has never had water intrusion, even though the broker's inspection notes from a prior client's offer show water damage in the basement. The listing broker has committed:
ANo violation because the prior offer was confidential
BFraudulent misrepresentation or fraudulent concealment✓ Correct
CA minor oversight not subject to discipline
DOnly a NAR Code of Ethics violation, not a legal violation
Explanation
Affirmatively stating something false (the property has never had water intrusion) when the broker knows this is untrue is fraudulent misrepresentation. This violates Washington's license law (RCW 18.
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