A listing agent in Colorado learns that the home's basement floods every spring. The seller asks the agent not to mention it. The agent should:
Why Disclose the flooding as an adverse material fact to potential buyers Is Correct
Answer B: Disclose the flooding as an adverse material fact to potential buyers
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.
People Also Study
Related Colorado Questions
- A Colorado broker who fails to disclose a known material fact about the property has potentially breached which duty?Agency
- Under Colorado law, which of the following would NOT be considered an adverse material fact requiring disclosure?Agency
- Under Colorado law, a broker's duty to disclose material facts continues until:Agency
- In Colorado, a broker's obligation to 'disclose all known material facts' applies to:Agency
- A Colorado property built before 1978 may contain which hazardous material that requires disclosure under federal law?Environmental
- The Colorado Disclosure of Environmental Hazards form requires sellers to disclose knowledge of which conditions?Environmental
- In Colorado, adverse possession requires all of the following EXCEPT:Property Ownership
- A Colorado broker who wishes to open their own brokerage office and employ other brokers must first:Colorado License Law
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →