Salesperson Greg is a buyer's agent helping client Susan purchase a home. During the transaction, Greg discovers that the seller's property has a history of flooding that was not disclosed on the Property Condition Disclosure Statement. Under New Jersey agency law, what must Greg do?
Correct Answer
B) Disclose the flooding history to Susan because it is a material fact affecting the property
As Susan's buyer's agent, Greg owes Susan fiduciary duties including the duty of disclosure of all material facts. A history of flooding is a material fact that could significantly affect the property's value and Susan's decision to purchase. Under New Jersey agency law and the duties owed by a buyer's agent, Greg must disclose this information to Susan promptly, regardless of whether it was included in the seller's Property Condition Disclosure Statement.
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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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