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Oregon broker Sandra is acting as a buyer's agent for couple Robert and Linda. While reviewing the seller's disclosure statement, Sandra discovers a material defect in the property that the seller did not disclose. Under Oregon law, what is Sandra's primary obligation?

Correct Answer

B) Disclose the material defect to her clients Robert and Linda promptly

Under ORS 696.815, a buyer's agent owes the client the duty to disclose material facts known to the licensee that affect the value or desirability of the property. A material defect discovered by Sandra must be disclosed promptly to her clients Robert and Linda. This duty to disclose material facts to the client is a core fiduciary obligation of a buyer's agent and cannot be waived or delayed.

Answer Options
A
Keep the information confidential because disclosing it could harm the seller's negotiating position
B
Disclose the material defect to her clients Robert and Linda promptly
C
Report the defect only to her principal broker and allow the principal broker to decide whether to disclose
D
Wait until after the offer is accepted before disclosing the defect to avoid disrupting the transaction

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Related Topics & Key Terms

Key Terms:

buyers_agentmaterial_factsdisclosure_dutyfiduciary_duties

Related Concepts

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

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