Connecticut salesperson Amy represents buyer Leon. During the transaction, Amy discovers that the property is located within a zone that may trigger obligations under the Connecticut Transfer Act (CGS §§ 22a-134 through 22a-134e) because the site was previously used as a dry-cleaning facility. Leon is unaware of this issue. Amy is not an environmental specialist. Under her fiduciary duties, what is Amy's most appropriate course of action?
Correct Answer
A) Disclose the potential Transfer Act issue to Leon and advise him to consult a qualified environmental professional before proceeding
Amy must disclose the potential Transfer Act issue to Leon and advise him to consult a qualified environmental professional. Under Connecticut agency law, the duty of disclosure requires a buyer's agent to inform the client of all known material facts that could affect the transaction, including the potential applicability of the Connecticut Transfer Act. The duty of reasonable care also requires Amy to recognize when a matter exceeds her expertise and to refer the client to the appropriate specialist. The Transfer Act can impose significant obligations on buyers of former commercial/industrial sites, making this information highly material.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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