Agency
A Michigan buyer's agent discovers the home inspector found structural defects the seller did not disclose. The agent's duty is to:
AKeep the information confidential to close the deal
BDisclose the defects to the buyer immediately✓ Correct
CAdvise the seller to lower the price
DWithdraw from the transaction
Explanation
A buyer's agent has a fiduciary duty of disclosure to their client. Material defects discovered during the transaction must be immediately communicated to the buyer so they can make an informed decision.
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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.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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