Agency
A New Hampshire seller's agent discovers that the basement floods every spring. The agent must:
AKeep it confidential because it was told to them by the seller
BDisclose it to prospective buyers as a material fact✓ Correct
COnly disclose it if a buyer asks specifically about flooding
DDisclose it only if the value impact exceeds $5,000
Explanation
Even as a seller's agent, a licensee must disclose known material facts that could affect a buyer's decision. Seasonal flooding is a material defect and must be disclosed proactively to prospective buyers.
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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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