A buyer's agent discovers that their client has been declared bankrupt but has not disclosed this information. The client wants to submit an offer on a property. What should the agent do?
Correct Answer
C) Advise the client that bankruptcy may affect their legal capacity and recommend disclosure
The agent should advise the client privately that an undischarged bankruptcy affects the client's ability to deal with property and obtain credit, and recommend disclosure and advice from the trustee and a lawyer before an offer is made. The agent keeps the information confidential from third parties unless the client consents in writing.
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