A buyer's agent in New York learns that her client's debt-to-income ratio is 28%, while the co-op board for the property he wants to purchase typically rejects applicants with ratios above 25%. The client is otherwise pre-approved for financing. Which action best reflects the agent's fiduciary duty to her client?
Correct Answer
C) Inform the client of the board's typical approval threshold and help him evaluate his likelihood of approval before proceeding
A buyer's agent owes fiduciary duties of loyalty, disclosure, and care. This requires proactively sharing material information — including a co-op board's known approval criteria — that could affect the client's decision to pursue a property. Informing the client of the 25% threshold and helping him assess his position allows him to make an informed choice, which is the core of the agent's duty. The agent must disclose, but should not make the decision for the client.
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Robert is a buyer's agent in New York representing client Susan who is purchasing a condominium. Susan asks Robert whether she should hire an attorney to review the purchase contract. What should Robert advise under New York practice?
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In New York, a buyer's agent has several fiduciary duties to their client. All of the following are required fiduciary duties of a buyer's agent EXCEPT: