Seller Gibbons and broker Leah have entered into a listing contract to sell Gibbons house. Gibbons has told the broker that the roof is only one year old. The roof is actually five years old. Broker Leah has been representing the roof to be one year old. It's broker Leah liable to the buyer for the misrepresentation and why or why not?
a. Yes, because the broker is responsible for verifying all material information provided by the seller.
b. No, because the broker is protected by the hold harmless clause in the listing.
c. No, because the broker is protected by the safety clause and listing.
d. Yes, because as agent for the seller, the broker is an extension of the seller and is responsible for all representations of the property.
Answer: b. No, because the broker is protected by the hold harmless clause in the listing.
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