AgencyIntermediateAlabama Exam

A buyer's agent who learns that the property has an unresolved permit issue from an addition built without permits should:

AKeep the information confidential to protect the buyer from being overwhelmed
BDisclose this material fact to the buyer immediatelyCorrect
CDisclose only to the seller's agent
DWait until the inspection contingency period to inform the buyer

Why Disclose this material fact to the buyer immediately Is Correct

Answer B: Disclose this material fact to the buyer immediately

Unpermitted construction is a material fact that a buyer's agent must disclose to their client immediately, as it affects the property's value, insurability, and potential liability.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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