A buyer and seller in Lake Oswego, Oregon have signed a purchase agreement. The seller's principal broker then discovers that the property is located partially outside the city's Urban Growth Boundary. The buyer's broker had not disclosed this fact during negotiations. Which of the following actions is most appropriate for the seller's principal broker to take?
Correct Answer
D) Disclose the UGB information to the seller and ensure the buyer is also informed, as it may be a material fact affecting the transaction.
Oregon's Urban Growth Boundary (UGB) status is a material fact that directly affects a property's permitted uses, development potential, and value. Under ORS Chapter 696 and Oregon's statewide land use planning framework (ORS Chapter 197), licensees have a duty to disclose material facts known to them. The seller's principal broker must advise the seller of this information and ensure the buyer is also informed, as UGB status outside the boundary severely restricts development rights. Failure to disclose could expose both the seller and the broker to liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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