The owner tells the broker that there is a sewer on the property. A buyer purchases the property and discovers that there is only a septic tank on the property. Who is liable?

In this scenario, the broker holds liability primarily due to the reliance on the seller's information regarding the presence of a sewer system. Brokers have a fiduciary duty to their clients and must ensure that the information they convey is accurate. When the owner informed the broker about the existence of a sewer, the broker was responsible for conducting due diligence to verify that information before relaying it to the buyer.

If the broker failed to investigate claims regarding the sewer and instead took the seller’s word at face value, they could be found liable for misrepresentation or negligence. The broker’s obligation includes checking public records and ensuring that the property descriptions are correct to protect the interests of the buyer.

In relation to the other potential parties involved, while the seller also has a responsibility to disclose accurate information about the property, the broker's role in facilitating the transaction and providing assurances about the property’s conditions places them in a position where they can be held accountable if the information provided to the buyer is false. The appraiser typically evaluates the property but does not provide the same level of detail regarding the existence of systems such as sewer lines versus septic tanks; hence they are not liable in this context. The statement that there is no liability attaching to anyone does not hold as there is