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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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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