Agency
A Colorado buyer signs a buyer agency agreement. The buyer's agent learns the seller is in financial distress and must sell quickly. Must the buyer's agent disclose this to the buyer?
ANo, this is confidential seller information
BYes, this is material information beneficial to the buyer that the agent must disclose✓ Correct
COnly if the seller's agent gives permission
DOnly if the information comes from public records
Explanation
A buyer's agent has a duty to disclose material information beneficial to their client. The seller's financial distress and urgency to sell is material information that could affect the buyer's negotiating position, and the buyer's agent must share it.
Related Colorado Agency Questions
- Which of the following is NOT a duty owed by a Colorado transaction broker?
- A Colorado seller's agent has a duty of loyalty to the seller. Which of the following actions would violate this duty?
- Under Colorado law, a broker may change from a transaction broker to a seller's agent only if:
- A Colorado broker working as a transaction broker receives confidential information from the buyer about their maximum purchase price. The broker may:
- A Colorado listing broker acting as a seller's agent discovers the property has foundation issues not disclosed by the seller. The broker should:
- When a Colorado broker is acting as a seller's agent and knows the seller is behind on mortgage payments, should the broker disclose this to the buyer?
- A Colorado buyer's broker receives a written offer of compensation from the listing broker. The buyer's broker should:
- The duty of 'obedience' in a Colorado agency relationship means the broker must:
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