Buyer's agent Pam represents Ed in Ohio. A home inspection reveals that the property's septic system was installed without the required county permits. The seller states he was unaware of the violation. Ed asks Pam how to proceed. Which response best reflects Pam's obligations under Ohio agency law?
Correct Answer
C) Inform Ed that the unpermitted system is a material fact affecting value, insurability, and legal compliance, and recommend consulting environmental and legal professionals before proceeding
Under Ohio agency law, an unpermitted septic system is a material fact because it can affect property value, insurability, financing, and the buyer's potential legal liability after closing. Pam's fiduciary duties of disclosure and reasonable care require her to fully inform Ed of these implications and recommend consultation with qualified environmental and legal professionals before Ed makes a final decision.
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Previous Question
Buyer's agent Helen represents Steve in Ohio. Steve asks Helen to recommend a home inspector. Helen has a referral arrangement with a local inspection company through which she receives a small fee for each referral. What must Helen do under Ohio agency law?
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A seller agrees to a $5,000 concession toward the buyer's closing costs. At closing, the buyer's actual closing costs total only $3,500. Under Ohio agency law and standard closing practice, what happens to the remaining $1,500?