Which of the following is the BEST example of a material fact that must be disclosed to a buyer?
Why A known structural defect in the foundation Is Correct
Answer C: A known structural defect in the foundation
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.
People Also Study
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
- Misrepresentation of a material fact by a seller in Alabama that induces a buyer to purchase may allow the buyer to:Contracts
- An Alabama listing agent discovers a material defect in the property. The seller instructs the agent to keep this secret. The agent should:Agency
- Which federal law requires sellers to disclose known lead-based paint hazards in homes built before 1978 in Alabama?Environmental
- When must an Alabama real estate licensee disclose their license status to a party in a transaction?Alabama License Law
- A purchase agreement in Alabama that is contingent on the sale of the buyer's current home is an example of a:Contracts
- In Alabama, a buyer's agent who finds that a property has a latent defect not disclosed by the seller must:Agency
- Under the Alabama Landlord-Tenant Act, if a landlord fails to make required repairs within a reasonable time after written notice, the tenant may:Property Management
Key Terms to Know
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →