In Alabama, a buyer's agent who finds that a property has a latent defect not disclosed by the seller must:
Why Disclose the defect to the buyer Is Correct
Answer B: Disclose the defect 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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- An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:Agency
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- Which fiduciary duty requires an Alabama agent to put the client's interests above their own?Agency
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Key Terms to Know
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
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.
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