Agency
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?
AYes, always — all financial information about the seller must be disclosed
BNo — this is confidential seller information, not an adverse material fact about the property itself✓ Correct
CYes, only if the mortgage is more than 3 months past due
DYes, but only after the buyer's offer is accepted
Explanation
A seller's mortgage payment status is confidential information about the seller's financial situation, not an adverse material fact about the physical property. A seller's agent should not disclose this without the seller's consent, though the agent cannot assist in fraud.
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