Real Estate Broker Not Liable

Jeffrey P. Downer and Pamela J. DeVet obtained summary judgment for their real estate broker client in Hosmer Holdings LLC v. Tong in King County Superior Court. Plaintiff developer saw a marketing brochure in which the broker used the county assessor’s square footage figure for the downtown Bellevue property. The broker believed it was accurate; the owner had paid taxes on the parcel for decades and did not correct the number. The brochure identified the source of the data, encouraged potential buyers to verify any and all information, and included disclaimers. Nonetheless, the developer purchased the property without verifying size. Months later, a survey indicated the parcel was about 15 percent smaller. The developer sued the broker for $2.5 million, his own assessment of the difference in value, asserting negligent misrepresentation and breach of the Consumer Protection Act (CPA). The court dismissed all claims as a matter of law.