A buyer's broker discovers that the seller is facing foreclosure — information not directly related to the property. The buyer's broker should:
Why Disclose this material fact to the buyer as it may affect their negotiating position Is Correct
Answer B: Disclose this material fact to the buyer as it may affect their negotiating position
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.
People Also Study
Related Alabama Questions
- An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:Agency
- When a listing agent learns that their seller is under severe financial distress and must sell quickly, the duty of confidentiality requires:Agency
- A listing agent who learns that the seller is in severe financial distress must disclose this fact to:Agency
- In Alabama, a real estate agent must disclose to a prospective buyer that they have a personal financial interest in a property they are selling. This disclosure must be:Agency
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
State-Specific Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →