Salesperson Victor in Michigan represents buyer Elena. During the transaction, Victor learns from a neighbor (not from the seller or seller's agent) that the property's well water has tested positive for elevated arsenic levels in the past. The seller's disclosure statement makes no mention of water quality issues. Victor has not independently verified this information. What is Victor's BEST course of action under Michigan agency law?
Correct Answer
B) Disclose the information to Elena and recommend she have the well water independently tested before proceeding
As Elena's buyer's agent, Victor owes her the fiduciary duty of disclosure. Even if the information is unverified, potential arsenic contamination in well water is a serious material fact that could significantly affect Elena's health, safety, and the property's value. Victor must disclose what he has learned to Elena and recommend she conduct independent testing. A buyer's agent cannot ignore information that may be material simply because it is unverified — the duty is to disclose and recommend appropriate investigation, not to independently verify before disclosing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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