David, a Minnesota real estate salesperson, is acting as a buyer's agent for the Nguyen family. During a showing, David learns that the property's foundation has a significant crack that was not disclosed by the seller. The seller's agent asks David not to mention this to his clients. Under Minnesota law, what must David do?
Correct Answer
B) Disclose the foundation crack to the Nguyen family, because buyer's agents owe fiduciary duties to their clients
Under Minn. Stat. Ch. 82 and Minnesota agency law, a buyer's agent owes fiduciary duties to the buyer, including the duty of disclosure of all material facts that could affect the buyer's decision. A significant foundation crack is a material defect. David must disclose this to the Nguyen family regardless of the seller's agent's request, as his duty of loyalty runs to his client, the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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