New Jersey salesperson Carla represents buyer Mr. Patel as his buyer's agent. During the transaction, all of the following would be breaches of Carla's fiduciary duty to Mr. Patel EXCEPT:
Correct Answer
A) Informing Mr. Patel that the property is located in a FEMA-designated flood zone
Informing Mr. Patel that the property is in a FEMA-designated flood zone is exactly what Carla should do — it is a fulfillment of her fiduciary duty of disclosure, not a breach. A flood zone designation is a material fact that affects the property's insurability, cost of ownership, and the buyer's decision to purchase. Disclosing this to Mr. Patel is a proper and required act of a buyer's agent.
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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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