Under Ohio law, seller's agent Diane lists a property for seller Pete. During an open house, a prospective buyer mentions to Diane that he is currently involved in litigation with the homeowners association (HOA) of the subdivision where Pete's property is located. Under Ohio agency law, must Diane disclose this information to Pete?
Correct Answer
D) Yes, because the buyer's ongoing litigation with the HOA is a material fact that could affect the transaction and the seller's decision to accept an offer from this buyer
Under Ohio agency law, Diane's fiduciary duty to Pete requires disclosing information that could materially affect the seller's decision. A buyer's active litigation with the subdivision's HOA is relevant because it could affect the transaction, neighborly relations, or the buyer's ability to close.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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