Associate broker Carlos in Augusta, Maine is working as a buyer's agent for Elena, who is purchasing a lakefront cottage. During a showing, Carlos notices that the dock appears to extend into a protected shoreland zone and may violate Maine's Shoreland Zoning Act. What is Carlos's primary obligation under Maine agency law?
Correct Answer
B) Disclose the potential shoreland zoning issue to Elena and recommend she seek expert advice
As Elena's buyer's agent, Carlos owes her fiduciary duties including full disclosure of all material facts that could affect the property's value or Elena's decision to purchase. A potential shoreland zoning violation under Maine's Shoreland Zoning Act (38 M.R.S. §§ 435–449) is a material fact. Carlos must disclose this to Elena promptly and recommend she consult an attorney or zoning expert before proceeding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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