Source: Convex

A real estate agent, Jane, was representing a seller in the sale of a commercial property. A buyer, ABC Retail Group,  purchased the property based on Jane’s representations and the information provided in the property disclosure  statement. Shortly after moving in, ABC Retail Group became aware of several significant defects in the property that  were not immediately visible, such as a cracked foundation, mold issues in the basement, and non-compliance with local  building codes. The buyer filed a professional liability claim against Jane for failure to disclose material defects in the  property, claiming that Jane’s failure to disclose the known issues resulted in financial losses due to the unexpected repair costs, decreased property value, and emotional distress.