Under New York law, a seller's agent owes fiduciary duties exclusively to the seller client. Which of the following is NOT a fiduciary duty owed to the seller, but rather a statutory obligation owed to all parties in the transaction?
Correct Answer
D) Disclosure of known material facts that could affect the value or desirability of the property
Disclosure of known material facts to all parties — including buyers — is a statutory and common law obligation that runs to everyone in the transaction, not a fiduciary duty owed exclusively to the seller client. Under New York common law and the NY License Law, licensees must disclose known material facts regardless of whom they represent. Fiduciary duties such as loyalty, confidentiality, and diligence, by contrast, are owed solely to the seller as the agent's principal. This distinction is the basis of the EXCEPT question: D describes a duty to third parties, not a fiduciary duty to the seller.
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Previous Question
Lisa, a seller's agent in New York, discovers that her client failed to disclose a known foundation crack in the basement on the Property Condition Disclosure Statement. The seller had mentioned this issue to Lisa during the listing appointment but chose not to disclose it. What is Lisa's primary obligation under New York law?
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Agent Robert represents seller Patricia in Queens. Patricia asks Robert to help her understand the tax implications of selling her property for a capital gain. How should Robert respond under New York law?