Under Ohio law, buyer's agent Douglas discovers through public records that the seller of a property his client wants to purchase is facing foreclosure. The foreclosure is not mentioned in the listing. What should Douglas do?
Correct Answer
A) Disclose the foreclosure information to the client because it is a material fact that could affect negotiations and the transaction's viability
Under ORC §4735.62, the buyer's agent has a fiduciary duty to disclose material facts that could affect the client's decision. A pending foreclosure, discoverable through public records, could impact the transaction's viability, timeline, and negotiation strategy.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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