Agency
In Louisiana, 'material facts' that must be disclosed by a licensee include which of the following?
AThe seller's ethnic background
BKnown structural defects, prior flooding, environmental hazards, unpermitted construction, and other conditions affecting value or habitability✓ Correct
CThe seller's marital status
DThe price a neighbor paid for their home five years ago
Explanation
Material facts are conditions known to the licensee that would affect a reasonable buyer's decision — property defects, flooding history, environmental issues, unpermitted work, and other factors affecting value, safety, or habitability. Non-property personal information about the seller is not a material fact.
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Key Terms to Know
Agency
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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