If a buyer is harmed due to a malfunctioning water heater that the listing agent failed to disclose, who would be at fault?

In a real estate transaction, agents have a fiduciary duty to their clients and are responsible for disclosing any material facts that could affect the buyer's decision. If the listing agent fails to disclose a malfunctioning water heater, and this omission leads to harm for the buyer, the listing agent bears significant responsibility.

The listing agent is obligated to provide full disclosure about any known issues with the property, including problems with major systems like the water heater. Failing to do so constitutes a breach of that duty, resulting in liability for any damages incurred by the buyer due to the undisclosed defect.

While the seller may also be responsible for not making the agent aware of the water heater's condition, the primary fault in this scenario lies with the listing agent, who is the party charged with the duty of disclosure. The buyer's agent typically does not have knowledge of problems unless the seller or the listing agent conveys that information. Therefore, in this particular situation, the listing agent is at fault for not fulfilling their disclosure obligations.