AgencyIntermediateNorth Carolina Exam

A NC buyer's agent who fails to disclose a known material defect because the seller is also a client (in a dual agency) has violated:

ANo rule, since dual agency requires neutrality
BThe duty of disclosure to the buyer clientCorrect
COnly RESPA
DThe seller's confidentiality

Why The duty of disclosure to the buyer client Is Correct

Answer B: The duty of disclosure to the buyer client

Even in a disclosed dual agency, the broker must disclose material defects to the buyer. The duty to disclose material facts to all parties supersedes the duty of confidentiality in dual agency.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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