Contracts
A Washington purchase agreement includes a 'hold harmless' clause in favor of the broker. This clause attempts to protect the broker from liability for:
AAny claims arising from the transaction✓ Correct
BErrors in marketing materials only
CFraudulent misrepresentations made intentionally by the broker
DAll claims, including intentional fraud (note: courts may not uphold exculpatory clauses for intentional misconduct)
Explanation
A hold harmless clause attempts to indemnify the broker against claims arising from the transaction. However, such clauses generally cannot protect a broker from their own fraud or willful misconduct under Washington law.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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