Agent Not Liable After Client Buys Useless Parcel Located Near Former Dumpsite

Originally published on Slaw by litigator  Matt Maurer.​

In a recent case, the plaintiff sued the defendant agent and her brokerage for negligent misrepresentation in connection with the plaintiff's purchase of a vacant three plus acre parcel of land that the plaintiff acquired with the intention of building a house on the property.

The agent initially acted for the vendors and prepared an MLS listing based on information from the vendors. The listing indicated that the property was "suitable for building your dream home" and was zoned as "residential."

The listing agreement ultimately expired and the vendor decided to re-list the property with another broker. The second broker prepared a MLS listing that was for all practical purposes identical to the MLS listing prepared by the defendant agent when she was acting for the vendor.