A buyer's agent learns during a transaction that the property has a zoning classification that conflicts with the buyer's stated intended use. Under TREC Canon §531.2, which of the following best describes the agent's obligation?
Correct Answer
A) Disclose the zoning conflict to the buyer promptly, since it is material information affecting the transaction
Under TREC Canon §531.2 (Disclosure), a license holder must disclose to the client all material facts relevant to the transaction that the license holder knows or reasonably should know. A zoning classification that conflicts with the buyer's stated intended use is material because it directly affects the buyer's ability to use the property as planned. The duty to disclose is proactive — it is not contingent on the buyer asking or on the seller's agent being notified first.
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