EstatePass
AgencyDuties To PrincipalHARD

A South Dakota agent who represents a buyer learns that the seller is facing foreclosure. The agent should:

Correct Answer

B) Share this information with the buyer as it may affect negotiations

A buyer's agent has a duty to disclose material information that could benefit the buyer's negotiating position. A pending foreclosure is material information that may create urgency for the seller and provide the buyer with negotiating leverage.

Answer Options
A
Not disclose this as it is the seller's private matter
B
Share this information with the buyer as it may affect negotiations
C
Report it to the Real Estate Commission
D
Advise the buyer to withdraw the offer

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Related Topics & Key Terms

Related Topics:

duty-of-disclosureclient-advocacynegotiation-strategyinformation-advantage

Key Terms:

buyer's agentdisclosure to clientforeclosurenegotiation leverageclient advocacy
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