Licensee Marcus is a seller's agent. During a showing, he notices that the basement has fresh paint covering what appears to be water staining, and the seller has not mentioned any moisture issues. A prospective buyer asks Marcus if there have been any water problems. Under Virginia agency law, what is Marcus's obligation?
Correct Answer
D) Marcus must disclose the observed condition to the buyer because Virginia law requires disclosure of material adverse facts known to the licensee
Under Va. Code § 54.1-2131(A) and § 54.1-2132, even a seller's agent in Virginia has a duty to disclose to all parties material adverse facts about the property that are known to the licensee and not otherwise known or readily observable by the buyer. The fresh paint over apparent water staining is a material adverse fact that Marcus must disclose regardless of his agency relationship with the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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