Discuss the issues raised in the following hypothetical situations based on info

Question

Discuss the issues raised in the following hypothetical situations based on information learned in the textbook. A real estate licensee must treat customers fairly. Customers are entitled to know material information about property that affects its value such as defects in the premises, title problems and boundary encroachments. Clients are entitled to all this information and the licensee's opinion regarding market value, assistance in marketing the home and negotiation strategy. Clients are entitled to loyalty, confidentiality and obedience as well as other duties previously discussed. Agents should not engage in fraud in discharging their duty to clients however. Customers are to be treated fairly but not equally.

     Aron has an appointment to show 83 acres of rural property he listed to a potential buyer. In discussing his appointment with another licensee in his office he learns that the property adjacent to the listed property had a test on their well water six months ago which showed the water unsafe to drink.

Q:Lindsey is a licensee showing property to a young couple and she says "This would be a great house for first time home buyers". If the couple buys the house and later become unhappy with their purchase explain whether Lindsey's statement is actionable.

Explanation / Answer

Here the licensee statement is actionable because he says that the house will be great for the first time home buyers. Since the customers have the rights to know all about regarding their property like any defects in the property, title and other boundary encroachment problems. Here the property adjacent to this property had unsafe drinking water but the licensee does not tell them. The licensee in order to sell this property gives wrong information or hides the information to the customers. He involved in a fraud and is disloyal to them. If the customers are unhappy after they have bought the property they can file a lawsuit against the licensee for involving in fraud and mislead them.

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