Question

An agent fails to discover crumbling wallboard on the basement ceiling beneath a bathroom. The agent sells the property, and the buyer later sues the agent for not discovering and disclosing a clearly visible and obvious problem. In this case, the agent _________.

Answer 1

Answer:

Has an exposure to negligent misrepresentation.

Explanation:

Negligent misrepresentation occurs when a person, in this case the agent in the exercise, has made a statement about something or someone (in this case a property) without having any reason to believe it true. As the name says, negligent misrepresentation; the agent should've noticed a clearly visible and obvious problem (negligence) and then he said it was all ok (misrepresentation).