Agency
A Colorado buyer's broker discovers a significant sinkhole risk on the property their client is about to buy. The broker must:
AA. Complete the transaction and let the buyer discover it after closing
BB. Immediately disclose this to the buyer, as it is a material fact adversely affecting the value and desirability of the property✓ Correct
CC. Only disclose it if the buyer specifically asks about sinkholes
DD. Keep it confidential to protect the seller
Explanation
Sinkhole risk is a material fact that adversely affects the value and desirability of property. A Colorado broker (regardless of who they represent) must disclose known material facts to the buyer. Failing to disclose known material defects exposes the broker to liability for misrepresentation or fraudulent concealment.
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