Agency
A Massachusetts buyer's agent representing a client on a purchase of a commercial property notices environmental concerns on the adjacent lot. The agent should:
AIgnore it—it's on a neighboring lot and not the buyer's problem
BAdvise the buyer of the potential issue and recommend investigation before proceeding✓ Correct
CDisclose it only if the seller asks
DReport it to the DEP without telling the buyer
Explanation
A buyer's agent must disclose all material information relevant to the buyer's decision, including environmental concerns on neighboring properties that could affect the subject property's value or usability.
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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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