Agency
A seller's listing agent discovers that the property's roof has significant undisclosed damage. What must the agent do?
AKeep the information confidential because the seller is the client
BDisclose the material defect to prospective buyers✓ Correct
COnly disclose if the buyer's agent specifically asks
DRemove the listing until the roof is repaired
Explanation
Even though a listing agent's primary duty is to the seller, they are required by Alabama law to disclose known material defects to prospective buyers. A damaged roof is a material fact that could affect a buyer's decision.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA 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.
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