A buyer's agent in Mobile is representing a client who is purchasing a home from a seller who has completed the Alabama seller disclosure form. The form indicates no known defects, but during a walkthrough the buyer's agent notices visible signs of termite damage in the garage. The seller claims to have no knowledge of any termite activity. What is the buyer's agent's duty under Alabama law?
Correct Answer
B) Disclose the observed signs of termite damage to the buyer and recommend a professional pest inspection
Under Alabama agency law (Code of Alabama §34-27-81 et seq.) and AREC administrative rules (Alabama Administrative Code Chapter 790-X), a buyer's agent owes a fiduciary duty to the buyer that includes disclosing all known material facts affecting the property's value or desirability. When the buyer's agent personally observes visible signs of termite damage, that agent has a duty to disclose this observation to the buyer and recommend appropriate professional investigation — in this case, a pest inspection. The agent's duty to the buyer is independent of what the seller has stated on the disclosure form.
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Previous Question
Kevin sells his Tuscaloosa home to Diana. Kevin completed the Alabama seller disclosure form but deliberately omitted a known roof defect that had caused water damage to two upstairs bedrooms. Diana discovers the damage six months after closing and sues Kevin. Which of the following most accurately describes Kevin's potential liability under Alabama law?
Next Question
Robert is a licensed salesperson in Alabama representing a seller. After the seller completes the disclosure form, Robert learns from a neighbor that the property's HVAC system has a known carbon monoxide leak that the seller did not disclose. The seller denies any knowledge of the issue and instructs Robert not to mention it to buyers. What is Robert's most appropriate action under Alabama law?