Angela is representing buyer Robert in New York. Robert is pre-approved for a mortgage but mentions he recently lost his job. He asks Angela not to tell anyone about his job loss until after closing. Under New York agency law, what should Angela do?
Correct Answer
B) Advise Robert that he must disclose material changes in his financial status to his lender
Angela must advise Robert that material changes in financial circumstances must be disclosed to the lender, as failing to do so could constitute mortgage fraud. While she must keep client information confidential from third parties, she cannot assist in potentially fraudulent activity and must counsel proper disclosure to required parties.
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Under New York's Property Condition Disclosure Act, a seller who chooses not to complete and deliver a Property Condition Disclosure Statement to the buyer must do which of the following?