Agency
A buyer's agent who learns the subject property has a zoning change pending that will allow a neighboring commercial development should:
AKeep it confidential to avoid scaring the buyer
BDisclose this material information to the buyer so they can make an informed decision✓ Correct
COnly disclose if the commercial development is already approved
DDisclose only if the buyer specifically asks about future development
Explanation
A pending zoning change that could significantly affect a property's value and use is material information. The buyer's agent owes the duty of disclosure and must inform the buyer so they can make an informed purchasing decision.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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