AgencyIntermediateAlabama Exam

The seller's agent has a duty to inform a prospective buyer of which of the following?

AThe seller's minimum acceptable price
BA material defect in the property that the agent discovered during a walkthroughCorrect
CThe seller's personal financial situation, though specifics can vary by situation
DThe agent's commission rate

Why A material defect in the property that the agent discovered during a walkthrough Is Correct

Answer B: A material defect in the property that the agent discovered during a walkthrough

A seller's agent must disclose known material defects in the property to prospective buyers, even though the agent's fiduciary duty is to the seller.

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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