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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Related Topics & Key Terms
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Related Concepts
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
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- → An Oklahoma licensee is asked about a seller learns of a new defect after already delivering a disclosure or disclaimer statement. What is the best answer?
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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?