Agency
A seller's agent who learns that the buyer is desperate to purchase and will pay well above asking price must:
AKeep this information confidential from the seller
BImmediately disclose this to the seller as material information✓ Correct
CDisclose only if the buyer gives permission
DReport it to the ADRE
Explanation
An agent owes the client loyalty and must disclose information that is material to the client's interests. A buyer's willingness to pay more is material information the seller's agent must share.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
State-Specific Concepts
DRE Regulation
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