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| A Legal-Economic Analysis of Changing
Liability Rules Affecting Real Estate Brokers and Appraisers Authors: Donald R. Levi and Curtis D. Terflinger Start Page: 133 Abstract: Real estate
professionals operate in a legal environment characterized by new expectations. The
increasing number of lawsuits reflects the arrival of the age of consumerism in the real
estate industry. Liability positions being staked out are largely premised on industry
professionalization. The area of greatest activity is misrepresentation litigation
initiated by buyers. Buyer cases have become the crucible for developing "public
policy" concepts of professional liability. This article considers the multiple
premises of liability to buyers, including negligent misrepresentation, state licensing
laws, and professional codes of ethics. Also consideration are applications to appraisers,
liability economics, and preventive strategies. |
