Agent Paul at Narragansett Realty represents buyer Tina under a written buyer agency agreement. While showing Tina a home listed by a different brokerage, Paul learns from the listing agent that the seller is in financial distress and must sell within 30 days. Tina has not asked about the seller's motivation. Under Rhode Island agency law, what is Paul's obligation regarding this information?
Correct Answer
B) Paul must disclose this information to Tina because it is a material fact relevant to her purchasing decision as his buyer client
As Tina's buyer's agent, Paul owes her the fiduciary duty of disclosure under Rhode Island agency law (§ 5-20.6). This duty requires Paul to disclose all material facts relevant to the transaction, including the seller's financial distress and urgent need to sell. This information directly affects Tina's negotiating position and purchasing decision, making it a material fact that Paul must share with his client regardless of how he obtained it.
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Related Topics & Key Terms
Key Terms:
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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