37-51-315. Vicarious liability. (1) A party to a real estate transaction is not liable for a misrepresentation made by the party’s agent or subagent unless:

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(a)the party has actual knowledge of the misrepresentation; or

(b)the agent or subagent is repeating a misrepresentation made by the party.

(2)A broker is not liable for a misrepresentation made by the broker’s subagent unless:

(a)the broker has actual knowledge of the misrepresentation;

(b)the subagent making the misrepresentation is an employee of the broker and not an independent contractor; or

(c)a broker or subagent is repeating a misrepresentation made by the broker.

(3)An agent is not liable for a misrepresentation made by the principal unless the agent has actual knowledge of the misrepresentation.