Broker Maria lists a property for seller Greg in Kansas. During the listing period, a buyer represented by licensee Tom from a different brokerage submits an offer. Tom's buyer agency agreement was signed before the showing. Greg asks Maria whether he is required to disclose to Tom's buyer that the property is in a flood zone. Maria knows the flood zone status is a material fact. Under Kansas law, which statement correctly describes the disclosure obligations in this scenario?
Correct Answer
D) Maria must disclose the flood zone status to the buyer's agent because seller's agents in Kansas owe a duty to disclose known material facts to all parties
Under K.S.A. 58-30,105, a seller's agent in Kansas owes a duty to disclose known material facts about the property to all parties in the transaction, including the buyer and buyer's agent. A flood zone designation is a known material fact that materially affects the value and desirability of the property. Maria's duty to disclose runs not only to her client (the seller) but also to other parties, and she must disclose the flood zone status to Tom and his buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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