Broker Reactivation-Adverse Material Facts: Scenario

Video Transcription

Video Summary

In this video, the scenario involves a broker and a seller who entered into an exclusive right-to-sell listing agreement. The buyer and seller agreed to a contract for buying and selling real estate. The buyer presented an inspection objection notice mentioning issues with the sewer line and requested specific repairs. An inspection resolution was signed by both parties, stating that the seller would have the mainline hydro-flushed and re-scoped by a licensed sewer cleaning company. However, the listing broker asked the seller to remove a $16,000 recommendation to replace the entire line from the invoice, so as not to scare off the buyer. The buyer later discovered this and sued the seller for damages, alleging that material information was withheld.

Keywords

broker

exclusive right-to-sell listing agreement

sewer line

inspection resolution

material information withheld