37-51-315. Vicarious liability. (1) A party to a real estate transaction is not liable for a misrepresentation made by the party's agent or subagent unless:
     (a) the party has actual knowledge of the misrepresentation; or
     (b) the agent or subagent is repeating a misrepresentation made by the party.
     (2) A broker is not liable for a misrepresentation made by the broker's broker associate or subagent unless:
     (a) the broker has actual knowledge of the misrepresentation;
     (b) a broker associate making the misrepresentation is an employee of the broker and not an independent contractor or subagent; or
     (c) a broker associate or subagent is repeating a misrepresentation made by the broker.
     (3) An agent is not liable for a misrepresentation made by the principal unless the agent has actual knowledge of the misrepresentation.

     History: En. Sec. 5, Ch. 565, L. 1995.