Agent Savoy is representing a buyer under a written buyer representation agreement in Louisiana. During the transaction, Agent Savoy learns that the seller's property has a significant foundation issue that was not disclosed on the Louisiana Residential Property Disclosure Document. The seller's agent is unaware of this defect. What is Agent Savoy's obligation under Louisiana law?
Correct Answer
A) Disclose the known material defect to the buyer and advise the buyer to seek appropriate inspections or legal counsel.
Under Louisiana law, all licensees—including buyer's agents—have a duty to disclose known material defects affecting the property to their client. Agent Savoy must inform the buyer about the discovered foundation issue so the buyer can make an informed decision, seek professional inspections, or consult legal counsel. This disclosure obligation exists even though Savoy's primary duty is to the buyer, because material defects directly affect the buyer's interests and decision-making.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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