Agency
An agent notices the listed property has electrical wiring that appears hazardous but the seller has not disclosed it. The agent should:
AIgnore it since the buyer will have an inspection
BDisclose the hazardous condition to prospective buyers as a known material defect✓ Correct
CAdvise the seller to cover the wiring before showings
DOnly disclose if a buyer specifically asks about the electrical system
Explanation
An agent with direct knowledge of a material defect (hazardous wiring) must disclose it to prospective buyers even if the seller has not included it in the disclosure. The agent's duty of disclosure to buyers supersedes the seller's reluctance to disclose.
Related Arkansas Agency Questions
- A buyer's agent who submits a buyer's offer without authorization for a property that turns out to be worth far more may be liable for:
- Under Arkansas law, an agent must disclose to a buyer that they have a personal financial interest in a transaction. This is required by the duty of:
- The duty of reasonable care in real estate agency means the agent should:
- Which of the following is a material fact that a listing agent MUST disclose?
- Which of the following terminates an agency relationship by operation of law?
- In Arkansas, dual agency occurs when a broker represents:
- Ratification of an unauthorized act by an agent occurs when the principal:
- Which of the following is an example of an expressed agency relationship?
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