Agency
Which of the following best describes a material fact a North Carolina broker must disclose?
AThe seller's divorce proceedings
BA known roof leak that has not been repaired✓ Correct
CThe seller's urgency to sell quickly
DThe buyer's pre-approval letter amount
Explanation
A known material defect such as a roof leak is a material fact that must be disclosed to all parties regardless of agency relationship.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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.
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