Agency
A Kentucky agent represents a buyer in purchasing commercial property. After closing, the agent discovers the property has a serious environmental issue not known at the time of purchase. The agent's obligation is to:
ANothing, as the transaction is complete
BInvestigate whether the environmental issue was a known material fact they should have disclosed✓ Correct
CImmediately report the seller to authorities
DContact KREC to open an investigation
Explanation
Post-closing discovery of a problem raises the question of whether it was a material fact that should have been disclosed before the transaction. The agent should review what was known and what disclosures were made. This may have implications for potential liability.
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