Agency
A Minnesota buyer's agent facilitates a transaction from offer through closing. After closing, the buyer discovers an undisclosed defect. The buyer's recourse against the agent depends primarily on:
AThe agent's years of experience and license level
BWhether the agent knew or should have known about the defect and failed to disclose it✓ Correct
CThe purchase price of the property
DWhether the defect was covered by the home warranty
Explanation
A buyer's agent's liability for undisclosed defects depends on whether they knew or should have known about the defect. Agents are held to the standard of a reasonable real estate professional in Minnesota - if a competent agent would have discovered or recognized the defect, the agent may be liable for failing to disclose it.
Related Minnesota Agency Questions
- A Minnesota agent is asked by a prospective client whether they can guarantee a sale within 60 days. The agent should:
- In Minnesota, which of the following illustrates the fiduciary duty of 'loyalty' owed by a buyer's agent to their client?
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- A Minnesota buyer's agent receives verbal permission from the buyer to sign the offer on the buyer's behalf since the buyer is traveling. Without written authorization, this verbal permission:
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- In Minnesota, a listing agent represents the seller from the time the listing agreement is signed until:
- A Minnesota buyer tells their agent they have been pre-approved up to $400,000 but want to start their search at $350,000. The agent shows only homes priced below $350,000. Is this appropriate?
- In Minnesota, when must a licensee first provide a written agency disclosure to a buyer?
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