An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:
Why Disclose the defect to buyers because material defects must always be disclosed Is Correct
Answer B: Disclose the defect to buyers because material defects must always be disclosed
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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Related Alabama Questions
- Which of the following is an example of a material fact that must be disclosed in Alabama real estate transactions?Alabama License Law
- In Alabama, a buyer's agent who finds that a property has a latent defect not disclosed by the seller must:Agency
- Which fiduciary duty requires an agent to keep the principal's information private from third parties?Agency
- An Alabama real estate broker must keep a copy of every listing and purchase contract for a minimum of:Alabama License Law
- In Alabama, the seller's disclosure of known material defects must occur before:Contracts
- If an Alabama broker has a dispute about the disbursement of earnest money and cannot resolve it with the parties, the broker should:Trust Funds
- In Alabama, the duty of confidentiality requires a listing agent to:Agency
- An Alabama listing agent learns that the seller received notice of a job transfer and must sell quickly. This information is:Agency
Key Terms to Know
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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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