Question

      Shelby is showing a home to a couple who are customers. He is a subagent for the listing broker from another firm. Based on information from the MLS listing Shelby tells the couple that the home has 1620 square feet of living area but it actually only has 1590 square feet.

      4. Is Shelby's statement actionable under the Texas Deceptive Trade Practices Act (DTPA)?

      5. Does Paula have any liability for Shelby's actions?

      6. If the couple bought the house relying on Shelby's statement regarding square footage what remedies would be available under the Deceptive Trade Practices Act? What steps should Shelby or Paula take?

7. Shelby listed a home owned by Jenna and Reggie and asked them to complete a seller's disclosure of property condition specifically asking them to provide full, accurate information. No defects were noted under "foundation/slab(s) but Shelby saw cracked walls and When the sellers were confronted they admitted they were aware of foundation problems but do not want to disclose them. What should he do regarding the listing agreement? Does he have potential liability for fraud? What should he do regarding disclosure to potential buyers? Explain each answer.

Answer 1

(4)  Shelby is a  subagent for the listing broker from another firm. So he is not actionable because he doesn't aware of actual fact but MLS listing is liable as per law for providing wrong information regarding square feet .

(5) Paula information not provided in above question.

(6) Misleading a customer is an unfair business practice.It is not permitted by the Deceptive Trade Practices Act. The customer, can go for legal proceeding against the offender if he has affected.

As per the DTPA act, the plaintiff (couple) can go for the following remedies:-

1. Can claim compensation for damage: If the Plaintiff suffered any loss/damage caused by issue(the square foot problem), Plaintiff can claim damage against the Offender(subagent or the firm).

2. Punitive damage: In this case, Plaintiff can claim for lump sum amount.

3. Legal expenses: As per this, plaintiff can also claim for legal expenses spend for the respective case from the offender.

(7)The shelby or the firm can ask for the authentication or evidence or both from the Owners to defend the case.