Buyer's agent Nicole is working with client Derek to purchase a home in Quincy. During a showing, Nicole notices that the basement shows signs of water intrusion and that the seller's disclosure form does not mention this issue. The property is listed by a different brokerage. What is Nicole's primary obligation under Massachusetts agency law?
Correct Answer
B) Advise Derek of the observed condition and recommend he obtain a professional inspection before proceeding
As Derek's buyer's agent, Nicole owes him fiduciary duties including the duty of reasonable care and the duty of disclosure of material facts. When Nicole observes a potential defect (signs of water intrusion), her primary obligation is to advise Derek of what she observed and recommend that he obtain a professional inspection before proceeding. This fulfills her duties of disclosure and reasonable care. The decision of whether to continue with the purchase belongs to Derek, not to Nicole.
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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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