A Purchaser Explains to His Real Estate Agent That He

question 2

Essay

A purchaser explains to his real estate agent that he wants to buy a house containing a suite that would generate rental income.The agent showed and sold to him a house with a basement suite.After taking possession of the house, the purchaser discovered that the previous owner had been renting the basement unlawfully.No permit to build the suite had been obtained, nor could it have been obtained because the ceiling was too low and the lot too small.It turned out that the agent knew about these legal requirements and knew that they had not been met.She said nothing.Is the law of misrepresentation actionable? Explain your reasoning.

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Definitions:

McCarran-Ferguson Act

A U.S. federal law enacted in 1945 that exempts the business of insurance from most federal regulation, leaving regulation primarily to the states.

Robinson-Patman Act

A 1936 U.S. law aimed at preventing anticompetitive practices by producers, specifically addressing price discrimination.

Nolo Plea

A legal plea where the defendant neither admits nor disputes a charge, allowing for a conviction without an admission of guilt.

Consent Decree

A legal agreement that resolves a dispute between two parties without admission of guilt, but with the court still retaining enforcement power.