Under Montana law, what is a licensee's obligation when they discover a material defect in a property?
Correct Answer
B) Disclose it to all parties to the transaction
Under Montana law (MCA 37-51-313), a real estate licensee has a duty to disclose all known material defects to all parties in a transaction, regardless of which party the licensee represents. A material defect is any fact that could significantly affect the value or desirability of the property. This duty cannot be waived by confidentiality obligations to a client, as it is a non-negotiable statutory requirement.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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