Broker Linda in Connecticut represents both seller Frank and buyer Tina in the same transaction with proper written dual agency consent. During the transaction, Frank tells Linda that the property has a foundation crack that was repaired three years ago and that he is not sure whether the repair was fully effective. Tina has not asked about the foundation. What must Linda do with this information?
Correct Answer
B) Disclose the foundation issue to Tina because it is a known material defect that may affect her decision
Even in a dual agency relationship, a Connecticut licensee must disclose known material defects that could affect a buyer's decision to purchase the property. A foundation crack with a potentially ineffective repair is a material defect under both CGS § 20-327b (Residential Property Condition Disclosure Act) and general agency law. The duty to disclose material defects is not overridden by the confidentiality obligation in dual agency — confidentiality protects negotiating strategy and personal circumstances, not information about the physical condition of the property that the buyer has a right to know.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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