Court Opinion

ID: 9549213
Source: CourtListenerOpinion
Date Created: 2023-08-07 18:14:53.186303+00
Date Added: 2024-06-11T15:20:00.128812
License: Public Domain

*764CONNOR, Justice,
with whom RABI-NOWITZ, Justice, joins, dissenting in part.
I dissent from the holding that an action for innocent misrepresentation should be permitted against the real estate broker.
When a realtor acts as a mere conduit for passing on information supplied by the seller, he should be under no duty independently to verify that information unless he has reason to believe the information to be false. See Lyons v. Christ Episcopal Church, 71 Ill.App.3d 257, 27 Ill.Dec. 559, 389 N.E.2d 623, 625 (1979). Allowing an innocent misrepresentation action against the broker in such circumstances is quite close to imposing strict liability. There is no reason to make the broker the “insurer” of the seller’s representation.
Although we recognized a claim based on innocent misrepresentation in Cousineau v. Walker, 613 P.2d 608 (Alaska 1980), that case is distinguishable from a case between a buyer and a broker. Sellers who make representations about their property should be held to the accuracy of the representations, as they are normally in the best position to know the facts. But a broker often has little personal knowledge of the property which he offers for sale. I see no reason to make the broker the guarantor of representations emanating from the seller. I would hold that innocent misrepresentation is not available as a cause of action by the buyer against the broker. Thus, I would reverse the judgment of the superior court. I agree with the balance of the majority opinion.