A Washington broker representing a buyer-client discovers during a walkthrough that the seller has painted over visible water stains on the basement ceiling. The buyer has not noticed. Under RCW 18.86, what is the broker's duty to the buyer-client regarding this observation?
Correct Answer
D) Disclose the observation to the buyer because the duty of disclosure requires sharing all material information
Under RCW 18.86.040(1)(d), a broker representing a buyer as a client owes the duty of disclosure, which requires the broker to disclose all material facts known to the broker that are not apparent or readily ascertainable by the buyer. Painted-over water stains are a material fact that the buyer has not observed and cannot readily ascertain, so the broker must disclose this information to protect the buyer-client's interests.
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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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