A seller’s broker sold a property to a buyer. Four months later, when the first rains of the season began, the buyer discovered significant roof leaks. The buyer sued both the seller and the broker for the cost of repairs. The seller sued the broker in the same action since the seller had informed the broker numerous times that the building needed a new roof. The broker’s testimony in court revealed the broker was aware of the leaky roof but had not mentioned it to the buyer since the issue of the leaking roof was not mentioned by the buyer. What is the most likely result of the court action?
The buyer may recover from both the seller and the broker. Further, the seller would recover in the suit against the broker.
The lack of disclosure between the broker and the buyer causes the broker to be the responsible party. Therefore, the buyer may recover from both the seller and the broker. Further, the seller may also recover from the broker since the broker was informed of the leaky roof by the seller and did not disclose it to the buyer. In actual practice, the seller would have disclosed the leaky roof in the Transfer Disclosure Statement (TDS) .