AgencyIntermediateDelaware Exam

A Delaware buyer's agent discovers that the property has a history of flooding not disclosed by the seller. What should the agent do?

AKeep this information confidential to avoid damaging the transaction
BDisclose the flooding history to the buyer, as it is a material fact affecting their decisionCorrect
CReport the information only to the Delaware Real Estate Commission
DAdvise the buyer to purchase flood insurance and proceed with the transaction

Why Disclose the flooding history to the buyer, as it is a material fact affecting their decision Is Correct

Answer B: Disclose the flooding history to the buyer, as it is a material fact affecting their decision

A Delaware buyer's agent has a duty to disclose all known material facts to their client, including known defects or adverse conditions affecting the property. Flooding history is a material fact that could significantly affect the buyer's decision and the property's value.

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

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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