Agency

An Arizona agent working with a buyer as a buyer's agent discovers the seller's property has an unpermitted addition. The agent should:

AIgnore it since it benefits the buyer to have extra square footage
BDisclose the unpermitted addition to the buyer as a material fact✓ Correct
CDisclose only to the buyer's lender, not the buyer
DKeep it confidential to protect the seller

Explanation

An unpermitted addition is a material fact that could affect the property's value, insurability, and the buyer's ability to finance or resell. The buyer's agent must disclose this known material fact to the buyer.

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