“Am I liable for false information I received from my client?”
May 27, 2026
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.
Q: “I recently completed a residential transaction as a listing agent. When I listed the property, the seller told me that the property was connected to public sewer, so that was what I described in the MLS. However, after closing, the buyer informed me that she learned the property was on septic, and she wants money back.
What is my liability, if any, for this incorrect information?”
A: Virginia Code section 54.1-2142.1 provides that agents are not liable for providing false information if that information was provided to the agent from the agent’s client. However, this liability shield is not unlimited. The agent would be liable for false information provided by the client if the agent had actual knowledge the information was false or the agent recklessly disregarded the truth.
Thus, assuming the listing agent did not have actual knowledge about the septic system and did not recklessly disregard evidence of a septic system, the agent would not be liable for the false information.
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