Agency
An Indiana seller's agent who learns their client is behind on mortgage payments should:
ATell all prospective buyers immediately
BKeep this information confidential as it is a personal matter, but disclose material defects about the property separately✓ Correct
CNotify the lender
DReduce the listing price without authorization
Explanation
A seller's financial situation (mortgage delinquency) is confidential client information, not a material fact about the property's condition. The agent must keep it confidential while still disclosing known material property defects.
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Key Terms to Know
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.
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.
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