Sec. 1101.805. LIABILITY FOR MISREPRESENTATION OR CONCEALMENT. (a) In this section, "party" has the meaning assigned by Section 1101.551.
(b) This section prevails over any other law, including common law.
(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.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1158 (S.B. 699), Sec. 90, eff. January 1, 2016.
Structure Texas Statutes
Title 7 - Practices and Professions Related to Real Property and Housing
Subtitle A - Professions Related to Real Estate
Chapter 1101 - Real Estate Brokers and Sales Agents
Subchapter Q. General Provisions Relating to Liability Issues
Section 1101.801. Effect of Disciplinary Action on Liability
Section 1101.802. Liability Relating to HIV Infection or AIDS
Section 1101.803. General Liability of Broker
Section 1101.804. Liability for Providing Certain Information
Section 1101.805. Liability for Misrepresentation or Concealment
Section 1101.806. Liability for Payment of Compensation or Commission