Broker Williams operates under dual agency with designated sales associates. The seller's designated associate discovers a material defect that could affect the buyer's decision. What must happen?
Correct Answer
A) The material defect must be disclosed to the buyer
Material defects must be disclosed regardless of the agency relationship as this involves legal disclosure requirements, not confidential information. Keeping material defects confidential would violate disclosure laws. The broker cannot choose to hide material defects. While the seller's associate can advise privately, the defect must still be disclosed to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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