Agency
A listing agent who learns that the seller is in severe financial distress must disclose this fact to:
AAll prospective buyers immediately
BThe buyer only if directly asked
CNo one, as it is confidential client information✓ Correct
DAREC within 10 business days
Explanation
An agent owes the duty of confidentiality to their client. A seller's financial distress is confidential client information and must not be disclosed to buyers or other parties without the seller's consent.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
State-Specific Concepts
AREC Regulation
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