Dana Riley purchased a home in the Brentwood area of Los Angeles.After she purchased the home,she learned that the home had been the residence of a long-time drug dealer.She experienced many late-night visitors and often noticed cars parked outside near the street curb with the drivers and passengers studying the home.The former owner has been convicted of drug charges.Dana has become uncomfortable with the visitors and the surveillance.She just wants out of the house.Suppose that the listing agent was aware of the home's history and the drug dealer's arrest and conviction.The agent told the neighbors to cooperate by not disclosing any information to Dana."Look," the agent told them,"you can get the house sold and keep your values up or let it sit there and have the old druggies come by and destroy it." Which of the following statements is true?

Question

Quizplus · Accepted Answer

The real estate agent has committed fraud by intentionally concealing material facts about the property, such as its history as a drug dealer's residence, that would have affected Dana's decision to purchase the home. The agent has a duty to disclose all known material facts about the property to potential buyers, and failing to do so constitutes fraud.

Dana Riley Purchased a Home in the Brentwood Area of Los