Agency
In New Mexico, a buyer's agent learns that the seller's property has a cracked foundation not disclosed in the listing. The agent must:
AKeep the information confidential from the buyer
BDisclose the known material defect to the buyer client regardless of any conflict with the seller's interests✓ Correct
COnly disclose if the buyer asks about foundations
DReport it to NMREC before telling the buyer
Explanation
Even information learned during negotiations or property visits that constitutes a material defect must be disclosed to the buyer client. The buyer's agent's fiduciary duty to the buyer includes disclosing all known material facts affecting the property's value or the buyer's decision.
Related New Mexico Agency Questions
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