Agency
Which of the following would constitute a material fact that a seller's agent must disclose to a buyer in Illinois?
AThe seller's divorce proceedings
BThat the seller has already purchased another home
CThe existence of a known underground storage tank on the property✓ Correct
DThe seller's original purchase price
Explanation
A known underground storage tank (UST) is a material fact that must be disclosed to buyers because it has a significant impact on property value and potential environmental liability. The seller's personal circumstances (divorce, purchase of another home, original price) are generally not material facts about the property itself.
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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.
Math Concepts
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