AgencyIntermediateAlabama Exam

In Alabama, a buyer's agent who finds that a property has a latent defect not disclosed by the seller must:

AKeep the information confidential as it's the seller's duty to disclose
BDisclose the defect to the buyerCorrect
COnly disclose if the buyer specifically asks
DReport directly to the Alabama Real Estate Commission

Why Disclose the defect to the buyer Is Correct

Answer B: Disclose the defect to the buyer

In Alabama, a buyer's agent has a duty to disclose all material facts known to the agent that could affect the buyer's decision. Known latent defects must be disclosed even if the seller has not disclosed them.

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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