A California buyer's agent helps their client submit an offer on a property. After the offer is accepted, the agent learns that a nearby freeway expansion project will significantly increase traffic noise near the property. The closing has not yet occurred. Under the agent's fiduciary duty, what must the agent do?
Correct Answer
A) Tell the buyer about the freeway expansion immediately, while decisions remain
A material fact learned after acceptance is still a material fact, and the buyer has decisions left - contingencies, an appraisal, whether to close at all. Other choices: acceptance does not end the duty to disclose; waiting until after closing is the version of this that produces a lawsuit; and a title report is not the boundary of what is material.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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