Agent Patel represents buyer Carla under a signed buyer agency agreement. While showing homes, Patel discovers that a home Carla is interested in has a foundation crack that the seller has not disclosed. The listing agent is from a different firm and is unaware of the defect. Under Wisconsin law, what is Patel's primary disclosure obligation regarding this discovered defect?
Correct Answer
A) Patel must disclose the defect to Carla because Carla is Patel's client
Under Wisconsin Statutes Chapter 452 and REEB 24, a buyer's agent owes fiduciary duties to the client, including the duty to disclose all material information relevant to the transaction. Since Carla is Patel's client under a signed buyer agency agreement, Patel must immediately disclose the discovered foundation crack to Carla so she can make an informed decision. The client's interests are Patel's primary obligation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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