AgencyIntermediateCalifornia Exam

A buyer's agent has a duty of disclosure. Which of the following must the buyer's agent disclose to the buyer?

AThe seller's motivation for selling, if known, as commonly applied in brokerage relationships
BAll material facts that affect the property's value or desirabilityCorrect
CThe agent's commission split with the listing broker, consistent with typical listing agreement terms
DThe seller's minimum acceptable price, per standard fiduciary practice in the industry

Why All material facts that affect the property's value or desirability Is Correct

Answer B: All material facts that affect the property's value or desirability

A buyer's agent has an affirmative duty to disclose all known material facts affecting the property's value or desirability. However, disclosing the seller's confidential information (like minimum price) would be a breach of the seller's confidentiality if acting as dual agent.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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