Agency
A seller's agent who fails to disclose that the subject property is in a flood zone to a buyer may be liable for:
ANothing, since flood zone information is publicly available
BNegligent or fraudulent non-disclosure of a material fact affecting the property's value and insurability✓ Correct
COnly a fine from FEMA
DNothing, since the seller controlled this information
Explanation
Flood zone status is a material fact that directly affects a property's value and the buyer's ability to obtain financing and insurance. An agent who knows the property is in a flood zone and fails to disclose it may be liable for negligent or fraudulent non-disclosure.
Related Arkansas Agency Questions
- The term 'fiduciary' in real estate agency means the agent:
- The duty of obedience in an agency relationship requires the agent to:
- A seller's agent receives two offers simultaneously. The agent's duty of disclosure requires them to:
- When does an agency relationship typically terminate?
- When does an agency relationship with a seller typically terminate?
- A buyer's agent in Arkansas owes which duty to the seller?
- A principal broker who allows a salesperson to operate independently without adequate supervision may be liable for:
- A net listing in Arkansas is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →