AgencyIntermediateAlabama Exam

A buyer's agent who learns the sellers are going through a divorce and are highly motivated should:

ADisclose this to the buyer to strengthen their negotiating positionCorrect
BKeep it confidential if the sellers shared it in confidence through their agent
CReport it to AREC as a material fact
DLower the offer price automatically

Why Disclose this to the buyer to strengthen their negotiating position Is Correct

Answer A: Disclose this to the buyer to strengthen their negotiating position

A buyer's agent owes the duty of disclosure to the buyer. Material facts that affect the buyer's negotiating position, such as a seller's motivation, should be disclosed to the buyer.

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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