54.1-2142 - Liability; knowledge not to be imputed. - Virginia Statutes

§ 54.1-2142. Liability; knowledge not to be imputed.

A. A client is not liable for (i) a misrepresentation made by a licensee inconnection with a brokerage relationship, unless the client knew or shouldhave known of the misrepresentation and failed to take reasonable steps tocorrect the misrepresentation in a timely manner, or (ii) the negligence,gross negligence or intentional acts of any broker or broker's licensee.

B. A broker who has a brokerage relationship with a client and who engagesanother broker to assist in providing brokerage services to such client shallnot be liable for (i) a misrepresentation made by the other broker, unlessthe broker knew or should have known of the other broker's misrepresentationand failed to take reasonable steps to correct the misrepresentation in atimely manner, or (ii) the negligence, gross negligence or intentional actsof the assisting broker or assisting broker's licensee.

C. Clients and licensees shall be deemed to possess actual knowledge andinformation only. Knowledge or information among or between clients andlicensees shall not be imputed.

D. Nothing in this article shall limit the liability between or among clientsand licensees in all matters involving unlawful discriminatory housingpractices.

E. Except as expressly set forth in this section, nothing in this articleshall affect a person's right to rescind a real estate transaction or limitthe liability of (i) a client for the misrepresentation, negligence, grossnegligence or intentional acts of such client in connection with a realestate transaction, or (ii) a licensee for the misrepresentation, negligence,gross negligence or intentional acts of such licensee in connection with areal estate transaction.

(1995, cc. 741, 813.)