Agency

A Florida buyer's agent learns that the listing broker's client (the seller) owes delinquent taxes. What should the buyer's agent do?

ADo nothing as this is the seller's private information
BInvestigate whether there are recorded tax liens that could affect the title and disclose this as a material fact to the buyer client✓ Correct
CImmediately terminate the transaction
DTell only the buyer's lender

Explanation

Delinquent taxes that result in recorded tax liens are material facts affecting the title and the buyer's decision. The buyer's agent has a duty to investigate (or recommend a title search) and disclose this information to protect the buyer client.

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