Agency
A Pennsylvania buyer's agent discovers a material defect in the home their buyer client wants to purchase. What must the agent do?
ADisclose the defect to the buyer immediately✓ Correct
BDisclose the defect to both buyer and seller
CKeep it confidential to maintain fiduciary duty to the buyer
DOnly disclose if directly asked by the buyer
Explanation
An agent owes the duty of disclosure to their client, requiring prompt disclosure of all material facts relevant to the transaction. A buyer's agent must inform their buyer client of any known material defects affecting the property's value or desirability.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
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