Marcus is a Michigan-licensed salesperson representing buyer Tina Chen in the purchase of a Lansing condominium. During the inspection, the inspector notes that the HVAC unit is at the end of its useful life. Marcus is aware that HVAC replacement typically costs $5,000–$8,000. What is Marcus's fiduciary duty to Tina in this situation?
Correct Answer
A) Advise Tina of the finding and its potential cost implications so she can make an informed decision
Marcus owes Tina the fiduciary duty of disclosure, which requires him to inform her of all material facts relevant to the transaction, including the HVAC condition and its cost implications. This duty is codified in MCL 339.2512d and ensures the buyer can make a fully informed decision about whether to proceed, negotiate a price reduction, or request repairs.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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.
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