Agency
Under New York law, if a buyer's agent inadvertently learns that the seller is in financial distress and must sell quickly, the agent:
AMust immediately disclose this to the buyer to fulfill the duty of disclosure✓ Correct
BMust keep this information confidential from the buyer if it was learned in a way that would violate the seller's privacy (though the agent may use it in negotiations)
CMust disclose the information only if it affects the property's value
DMay use the information to help the buyer negotiate a lower price
Explanation
A buyer's agent who learns that the seller is in financial distress and must sell quickly has a fiduciary duty of disclosure to the buyer — this is material information that could affect the buyer's negotiating strategy and decision-making. Unlike a seller's agent (who would keep this confidential), the buyer's agent must share material facts with their client, the buyer.
Related New York Agency Questions
- In New York, a broker's duty of 'disclosure' to a buyer-client requires the agent to:
- In New York, if a seller instructs their listing agent not to inform buyers that the property is in a flood zone, the agent should:
- Under New York Real Property Law § 443, what happens if a buyer refuses to sign the agency disclosure form?
- In New York, 'informed consent' to a dual agency arrangement must be obtained:
- Under New York law, when a buyer's agent submits an offer on behalf of the buyer, the agent must disclose their agency relationship to:
- In New York, a 'buyer's broker agreement' (exclusive buyer agency agreement) obligates the buyer to:
- In New York, when a licensee represents the buyer in a transaction involving a for-sale-by-owner (FSBO) property, the buyer's agent must:
- In New York, a 'listing agreement' creates what type of agency relationship?
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →