Broker Elena represents buyer Hector in his purchase of a home in Olympia. During a property tour, Elena notices visible water stains on the basement ceiling that the seller has not mentioned. Under RCW 18.86, what is Elena's obligation regarding this observation?
Correct Answer
A) Elena must disclose the water stains to Hector because she owes him a duty to disclose known material facts
Under RCW 18.86.040, a buyer's agent owes the client a duty to disclose all known material facts that affect the value or desirability of the property. Visible water stains in the basement are a known material fact that Elena has directly observed, and she must disclose this to Hector. This duty exists independently of the seller's disclosure obligations under RCW 64.06.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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