Wisconsin salesperson Greg represents buyer client Tanya under a signed buyer agency agreement. While showing Tanya a property, Greg learns from the listing agent that the seller is going through a divorce and must sell quickly at any price. Tanya does not ask about the seller's motivation. Under Wisconsin law, what should Greg do with this information?
Correct Answer
B) Greg must disclose the seller's motivation to Tanya because it is material information relevant to her negotiating position as his buyer client
Under Wisconsin Administrative Code REEB 24 and Wisconsin Statutes Chapter 452, a buyer's agent owes the client a proactive duty to disclose all material facts relevant to the transaction, including information about the seller's motivation that could affect the buyer's negotiating strategy. The seller's urgent need to sell is material information that could benefit Tanya in negotiations. Greg must disclose this to Tanya without waiting to be asked, as the duty of disclosure to a client is affirmative and proactive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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