Broker Priya represents buyer Marcus as a client in Washington. After Marcus's offer is accepted, Priya learns from a neighbor that the property has a history of flooding not disclosed on the seller's Form 17. The seller has already provided the Form 17 and the three-business-day rescission period has not yet expired. Under RCW 18.86, what should Priya do?
Correct Answer
D) Priya should immediately disclose the flooding history to Marcus so he can make an informed decision before the rescission period expires
Under RCW 18.86.040(1)(d), Priya owes Marcus the duty of disclosure of all material facts known to her that are not apparent or readily ascertainable by Marcus. A history of flooding is a material fact. Priya must disclose this immediately, and doing so while the three-business-day rescission period under RCW 64.06 is still open allows Marcus to exercise his statutory right to rescind if he chooses. Delaying disclosure would harm Marcus and violate Priya's statutory duties.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Question
Background Knowledge for Agency
Real World Application in Agency
Common Mistakes to Avoid on Agency Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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.
More Agency Questions
For the Wyoming salesperson state portion, the membership of the Wyoming Real Estate Commission is tested. Which statement is correct?
A Wyoming licensee is reviewing a Commission appointment is reviewed for licensee-experience requirements. What is the best answer?
A West Virginia salesperson is asked about a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. What is the best answer?
In West Virginia, a WV licensee fails to disclose on the Commission agency relationship form whether the licensee represents the seller, buyer, or both. Which statement is correct?
In Vermont, a licensee owes fiduciary duties to a client. Which statement is correct?
- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
- → In Vermont, a licensee has substantial contact with an unrepresented person before a showing. Which statement is correct?
- → In Vermont, a firm has not elected designated agency. Which statement is correct?
- → In Vermont, a designated agency firm appoints separate agents for buyer and seller. Which statement is correct?
- → A Vermont licensee is asked about a licensee has substantial contact with an unrepresented person before a showing. What is the best answer?
- → In Vermont, a seller receives another offer before closing. Which statement is correct?
- → In Vermont, a designated agency firm appoints or changes a designated agent. Which statement is correct?
- → A Vermont licensee is asked about a firm has not elected designated agency. What is the best answer?
- → In Vermont, a brokerage hosts an open house for unrepresented visitors. Which statement is correct?
- → In Vermont, a licensee buys or sells property on the licensee's own account. Which statement is correct?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.
Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)
Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.
Real Estate Exam Agency & Fiduciary Duties (2026): Scenarios + Practice Questions
Master agency relationships and fiduciary duties using scenario patterns and practice questions built for exam wording.