Professional Liability of Real Estate Licensees

Question 1

Explain Negligence

Answer 1

• Failure to exercise duty of care, in circumstances which require that person to take care
• Only defence is that damage suffered by plaintiff was not foreseeable by defendant

Question 2

Criteria to Prove Negligence

Answer 2

1. Defendant owed plaintiff duty to take care
2. Defendant breached standard of care owed
3. Damage suffered by plaintiff because of defendants breach was not to remote in law

Question 3

Required Elements for Liability for Negligent Misrepresentation

Answer 3

1. Must be an untrue statement
2. Must have been made negligently
3. Must be special relationship between plaintiff & defendant giving rise to duty of care
4. Plaintiff must rely on negligent statement

NOTE: Duty to take care created when skilled person, or expert gives advice during course of business to person who may rely on that advice

• No need for contractual relationship, no need for it to be in writing before suing for negligent misrepresentation

Question 4

Explain Vicarious Liability

Answer 4

• Managing broker liable for wrongful/negligent acts of employees if committed during course of employment (Even fraud or assault)

NOTE: Injured party can sue both employer and employee for damages under employment act

Question 5

What 2 Misrepresentations Will Mortg. Brokers face liability for?

Answer 5

1. Negligent Misrepresentation
2. Deceit and Fraudulent Misrepresentation