Texas Occupations Code 1101.805 – Liability for Misrepresentation or Concealment
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(a) In this section, “party” has the meaning assigned by § 1101.551.
(b) This section prevails over any other law, including common law.
Terms Used In Texas Occupations Code 1101.805
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
(c) This section does not diminish a broker’s responsibility for the acts or omissions of a sales agent associated with or acting for the broker.
(d) A party is not liable for a misrepresentation or a concealment of a material fact made by a license holder in a real estate transaction unless the party:
(1) knew of the falsity of the misrepresentation or concealment; and
(2) failed to disclose the party’s knowledge of the falsity of the misrepresentation or concealment.
(e) A license holder is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction unless the license holder:
(1) knew of the falsity of the misrepresentation or concealment; and
(2) failed to disclose the license holder’s knowledge of the falsity of the misrepresentation or concealment.
(f) A party or a license holder is not liable for a misrepresentation or a concealment of a material fact made by a subagent in a real estate transaction unless the party or license holder:
(1) knew of the falsity of the misrepresentation or concealment; and
(2) failed to disclose the party’s or license holder’s knowledge of the falsity of the misrepresentation or concealment.