Agency
A Massachusetts real estate agent who has a fiduciary relationship with their seller client must disclose to the seller:
AOnly financial information about the buyer
BAll material information known to the agent that could affect the seller's decision, including the buyer's motivation and financial capacity to pay more✓ Correct
CNothing beyond what is in the listing agreement
DOnly information that the agent has verified in writing
Explanation
The fiduciary duty of disclosure requires an agent to share all material information with their client. If a buyer's agent reveals that their client is highly motivated and capable of paying a higher price, the seller's agent must share this with the seller to protect their interests.
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Key Terms to Know
Fiduciary Duty
The 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.
Buyer's AgentA 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.
State-Specific Concepts
Disclosure Requirements
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