The Agent's Liability: Protecting Your License
IN THIS LESSON
(Time: 15 Minutes)
Learn your dual responsibility: You share the seller’s duty to disclose lead. Avoid massive $16,000+ fines by mastering the rules for disclosure and knowing when you must walk away from a contract.
1. You Are the Compliance Officer
The federal law (Title X) does not just blame the seller—it blames you, the agent, too.
Your first duty is to tell your client about the lead disclosure law and ensure they comply before the contract is signed.
RULE: If you know about the lead but facilitate the sale anyway, you share the blame.
“If the house is pre-1978, the disclosure must be fully documented before the buyer signs the purchase contract.”
2. The Cost of Hiding the Truth
Ignoring the lead disclosure rule is breaking federal environmental law.
The penalties are serious—much worse than a typical TREC fine.
Fines
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Up to $16,000 per violation. (The EPA actively checks this.)
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Buyers can sue you for three times the actual damage if lead was hiddenBuyers can sue you for three times the actual damage if lead was hidden.
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Fines up to $100,000 and possible jail time (up to one year).
3: The Hardest Choice
You have a duty to your client, but your biggest duty is to obey the law.
The Conflict: If your seller of a pre-1978 house refuses to disclose known lead or refuses to sign the required forms, you cannot continue. Helping them break federal law makes you criminally liable.
“If your client refuses the mandatory disclosure, you must immediately and formally withdraw from representing them. Document this refusal to protect your license.”
A. Tell the seller you must disclose it.
B. Write "No Knowledge" and proceed.
C. Immediately withdraw from representation, documenting the refusal.
Your seller of a 1955 house admits off-record they had a lead pipe issue last year, but says, "Don't put that on the disclosure form." What is the only action that protects your license?
Interactive Scenario: The Lying Seller
(Required for CE Credit)
Mission 2 Checkpoint: Protecting Your Shield
Your license is your livelihood. The signed disclosure form is your shield.
Never facilitate a transaction where you know federal law is being broken. Your job is to comply.
Lesson 2 Final Quiz
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Up to $16,000 per violation.
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Immediately and formally withdraw from representation.
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Up to $100,000 fine and/or up to one year of imprisonment.
LESSON 2 FINAL QUIZ
1. What is the maximum federal civil fine per disclosure violation?
2. If a seller refuses to disclose known lead, what must the agent do?