Agency
A buyer's agent in Iowa who discovers a material defect in the property during a showing must:
AKeep the information confidential to protect the seller's interests
BDisclose the material defect to the buyer client✓ Correct
CWait for the inspection report before mentioning anything
DReport the defect only to the Iowa Real Estate Commission
Explanation
A buyer's agent who discovers a material defect (such as signs of foundation problems or water damage) must disclose this to their buyer client. The duty to disclose material facts to the buyer is a non-waivable duty that overrides any confidentiality concerns about the seller.
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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.
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.
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