TITLE 37. PROFESSIONS AND OCCUPATIONS

CHAPTER 51. REAL ESTATE BROKERS AND SALESPERSONS

Part 3. Licensing

Vicarious Liability

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 subagent unless:

(a) the broker has actual knowledge of the misrepresentation;

(b) the subagent making the misrepresentation is an employee of the broker and not an independent contractor; or

(c) a broker 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; amd. Sec. 38, Ch. 492, L. 2001.