Agent Thompson is a single agent for seller Wilson in Sarasota. Thompson learns that a major employer in the area will be closing, likely affecting property values. When must Thompson disclose this information?
Correct Answer
B) Immediately to Wilson, but not to potential buyers
A single agent owes the seller principal full disclosure and fiduciary duties, but that does not eliminate duties to buyers. F.S. 475.278(3)(a)9 also requires disclosure of known facts that materially affect the value of residential real property and are not readily observable. Seller loyalty alone cannot justify withholding a fact that must legally be disclosed. Whether this area-wide employer closure requires buyer disclosure must be assessed under the applicable material-fact rule and the actual property and information facts; it cannot be decided solely from single-agent status.
Why This Is the Correct Answer
A single agent owes the seller principal full disclosure and fiduciary duties, but that does not eliminate duties to buyers. F.S. 475.278(3)(a)9 also requires disclosure of known facts that materially affect the value of residential real property and are not readily observable. Seller loyalty alone cannot justify withholding a fact that must legally be disclosed. Whether this area-wide employer closure requires buyer disclosure must be assessed under the applicable material-fact rule and the actual property and information facts; it cannot be decided solely from single-agent status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
More Authorized Relationships Disclosures Questions
In Florida, the default brokerage relationship when no disclosure is made is:
Scenario Harbor Ledger raises this Florida point. In a Miami transaction, a buyer wants the Florida rule on buyer-and-seller same-transaction scenarios. Which statement is correct?
Broker Smith's firm represents the seller under a single agent relationship. During the transaction, the buyer asks Broker Smith to also represent them. If Broker Smith agrees, what must happen?
All of the following situations require immediate brokerage relationship disclosure EXCEPT:
Single agent Rodriguez represents buyer Adams in Tallahassee. Adams asks Rodriguez to submit an offer $20,000 below asking price on a property Rodriguez knows has multiple offers at full price. What should Rodriguez do?
- → A Florida real estate licensee working at an open house provides a visitor with a property information sheet, directions to local schools, and general market statistics. No written agreements are signed and no compensation is discussed. What type of relationship exists?
- → Florida requires brokerage relationship disclosure be provided:
- → Agent Robert is at an open house representing the seller. Visitor Janet starts asking detailed questions about the property's HOA fees, recent repairs, and neighborhood schools. She then asks if Robert can show her similar properties next week. When must Robert provide the appropriate disclosure?
- → Broker Martinez has designated Sales Associate Chen to represent the buyer and Sales Associate Rodriguez to represent the seller. Chen discovers that Rodriguez has been sharing confidential buyer information with the seller. What should Chen do?
- → During a transaction, the seller's mortgage company calls the transaction broker asking for details about the buyer's offer and financing. The seller has given verbal permission for the broker to share this information. What should the broker do?
- → In a Tampa transaction, a buyer wants the Florida rule on single-agent loyalty. Which statement is correct?
- → All of the following are requirements for dual agency in Florida EXCEPT:
- → Broker Sarah enters into a single agent relationship with seller Tom to list his waterfront property in Miami. During the listing period, Sarah's friend mentions she might be interested in buying Tom's property. What must Sarah do before showing the property to her friend?
- → A licensee is working as a transaction broker for both the buyer and seller in a residential sale. The seller mentions they are willing to accept $10,000 less than the listed price, but asks the licensee not to tell the buyer. What should the transaction broker do?
- → ABC Realty represents both the buyer and seller in the same transaction. The broker has appointed Sales Associate Johnson to represent the buyer and Sales Associate Martinez to represent the seller. What type of agency relationship exists?
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Previous Question
Broker Mike has been working as a single agent for seller Janet for 60 days. A potential buyer approaches Mike directly and asks him to also represent them in purchasing Janet's property. Mike wants to help both parties. What is the correct procedure for Mike to follow under Florida law?
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Single agent Rodriguez represents buyer Adams in Tallahassee. Adams asks Rodriguez to submit an offer $20,000 below asking price on a property Rodriguez knows has multiple offers at full price. What should Rodriguez do?