Robert is a Kentucky licensee representing the seller of a residential property. The seller discloses to Robert privately that the HVAC system has a known defect but asks Robert to keep this confidential because it is not reflected on the Seller Disclosure form already provided to the buyer. The buyer is Robert's seller client's agent, and no buyer's agent is involved. The buyer has not yet signed the purchase contract. Under Kentucky law, what is Robert's correct obligation?
Correct Answer
D) Robert must disclose the HVAC defect to the buyer because licensees cannot use confidentiality to shield known material defects from parties to the transaction.
Under KRS 324.360 and Kentucky license law under KRS Chapter 324, a licensee's duty to disclose known material defects to parties in a transaction cannot be overridden by a seller's instruction to maintain confidentiality. The HVAC defect is a material condition that affects the property's value and the buyer's decision. Robert's obligation to not engage in misrepresentation or concealment of material facts is a non-waivable duty under Kentucky law. Even as a seller's agent, Robert must disclose the known defect to the unrepresented buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
Death on property disclosure addresses whether sellers must inform buyers about deaths that occurred on the property, including natural deaths, suicides, and murders. Requirements vary significantly by state.
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.
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