Although Outdated, Information Provided By Seller’s Broker Was Not Inaccurate.

The seller’s broker posted the following about a commercial parcel: “This parcel is in an earthquake study zone but has had a Fault Hazard Investigation completed and has been declared buildable by the investigating licensed geologist. Report available for serious buyers.” The report, however, was prepared in 1982, and it was posted in 2006 when buyer bid on the property and seller accepted. After the close of the transaction, when buyer began to try to develop the property, he discovered that the County of Riverside did not agree that the property was “ready to build” because the process of investigating fault hazards changed after the 1994 Northridge earthquake. In the end, the buyer could not feasibly move forward with his plans for building commercial property. The buyer brought an action against his own broker, the seller and the seller’s broker. The trial court found liability only on the part of the seller’s broker. In affirming, the appellate court stated:  “Absent anything untrue or inaccurate about the statement seller’s broker actually made in the MLS [Multiple Listing Service], and absent damage to buyer from such falsity or inaccuracy, seller’s broker is not liable under [Civil Code] section 1088.” (Saffie v. Schmeling (Cal. App. Fourth Dist., Div. 2; March 7, 2014.)224 Cal.App.4th 563, [168 Cal.Rptr.3d 766].)