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AgencyFiduciary_dutiesHARD

Connecticut salesperson Nina represents buyer Derek. Derek is purchasing a property from seller Carl, who is represented by a different broker. After the purchase agreement is signed, Nina learns that the property may be subject to the Connecticut Transfer Act because Carl's business previously stored industrial solvents on-site. Nina also discovers that Carl failed to include this information in the property condition disclosure report required under CGS § 20-327b. Derek's attorney is already involved in the transaction. Nina does not inform Derek of the Transfer Act issue, reasoning that the attorney will discover it during title review. Under Connecticut agency law, which statement best describes Nina's conduct?

Correct Answer

C) Nina violated her duty of disclosure and reasonable care by relying on the attorney to discover a material fact she already knew

Nina violated her fiduciary duties of disclosure and reasonable care. Under Connecticut agency law, a buyer's agent must promptly disclose all known material facts to the client, regardless of whether other professionals involved in the transaction might eventually discover the same information. The Connecticut Transfer Act (CGS §§ 22a-134 through 22a-134e) can impose significant environmental investigation and remediation obligations on buyers of affected properties, making it a highly material fact. Nina's knowledge of the issue creates an independent obligation to inform Derek — she cannot delegate her disclosure duty to the attorney or assume the attorney will find it. The fact that Nina already knew about the Transfer Act issue makes her silence a clear breach.

Answer Options
A
Nina's conduct is proper because the attorney's involvement satisfies Nina's disclosure obligation through the doctrine of constructive notice
B
Nina fulfilled her fiduciary duty because the Transfer Act applies to sellers and attorneys, not to buyer's agents
C
Nina violated her duty of disclosure and reasonable care by relying on the attorney to discover a material fact she already knew
D
Nina's conduct is excusable because the Transfer Act issue was not included in the seller's CGS § 20-327b disclosure report, limiting Nina's knowledge

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Related Topics & Key Terms

Key Terms:

fiduciary_dutiesdisclosuretransfer_actreasonable_carebuyer_agencyct_agency

Related Concepts

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

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