Agency
A seller's agent in Illinois learns that the seller is under significant financial pressure to sell quickly. What must the agent do with this information?
ADisclose it to the buyer to ensure a fair transaction
BKeep it confidential as it is material information about the client, not the property✓ Correct
CDisclose it to other agents in the office
DInclude it in the MLS listing remarks
Explanation
An agent has a fiduciary duty of confidentiality to their client. Information about the seller's motivation or financial pressure is confidential client information that must be protected.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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