Under South Dakota agency law, a seller's agent owes fiduciary duties to the seller. Which of the following is NOT a fiduciary duty owed by a seller's agent to the seller client?
Correct Answer
C) Full disclosure of all known material defects to prospective buyers
Disclosing known material defects to prospective buyers is NOT a fiduciary duty owed to the seller client — it is a duty owed to the buyer and to the public under South Dakota disclosure law (SDCL 43-4-37 through 43-4-44). In fact, this duty runs in the opposite direction from the seller's fiduciary relationship. A seller's agent must disclose known material defects to buyers regardless of whether the seller wants this information shared, because concealing material defects would be a violation of law and professional ethics.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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