Agency
A Rhode Island seller's agent learns that the property is located in a flood zone. This is a material fact that the agent must disclose to the buyer because:
AThe seller instructed the agent to tell the buyer
BFlood zone status materially affects the property's value, insurability, and the buyer's costs✓ Correct
CThe CRMC requires all flood zone disclosures to be made by agents
DFlood zone status is required to be disclosed only for commercial properties
Explanation
Flood zone designation is a material fact because it affects the property's value, may require mandatory flood insurance, and impacts the buyer's total cost of ownership. Even a seller's agent must disclose known material facts to buyers.
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