CODE OF VIRGINIA

LIABILITY; KNOWLEDGE NOT TO BE IMPUTED (§ 54.1-2142)

A. A client is not liable for (i) a misrepresentation made by a licensee in
connection with a brokerage relationship, unless the client knew or should have
known of the misrepresentation and failed to take reasonable steps to correct
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 engages
another broker to assist in providing brokerage services to such client shall
not be liable for (i) a misrepresentation made by the other broker, unless the
broker knew or should have known of the other broker’s misrepresentation
and failed to take reasonable steps to correct the misrepresentation in a timely
manner, or (ii) the negligence, gross negligence or intentional acts of the
assisting broker or assisting broker’s licensee.

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

D. Nothing in this article shall limit the liability between or among clients
and licensees in all matters involving unlawful discriminatory housing
practices.

E. Except as expressly set forth in this section, nothing in this article shall
affect a person’s right to rescind a real estate transaction or limit the
liability of (i) a client for the misrepresentation, negligence, gross
negligence or intentional acts of such client in connection with a real estate
transaction, or (ii) a licensee for the misrepresentation, negligence, gross
negligence or intentional acts of such licensee in connection with a real estate
transaction. However, nothing in this article shall create a civil cause of
action against a licensee.

HISTORY: 1995, cc. 741, 813; 2016, c. 334.