§ 2306 Agent Fraud Prohibition

• •An agent cannot commit fraud just because they say they have permission.
• •If the other person knows or suspects the act is fraudulent, the agent has no authority.
• •The rule applies to any kind of deceit, not just financial fraud.

A real estate agent tries to hide serious problems with a house when selling it to a buyer who already knows about those problems.

Because the buyer suspects the agent is being dishonest, the agent has no authority to lie or hide facts, even if the agent claims they are just doing their job.