Agency
In South Dakota, a buyer's agent who discovers a zoning change that will allow commercial development adjacent to the residential property the buyer is considering should:
AKeep this information to themselves to avoid scaring the buyer away
BDisclose this material fact to the buyer so they can make an informed decision✓ Correct
COnly disclose after the buyer has signed the purchase contract
DReport the zoning change to the Real Estate Commission
Explanation
An upcoming or approved zoning change adjacent to a property is a material fact that could significantly affect the property's value and the buyer's decision. The buyer's agent must disclose all known material facts affecting the property to the buyer client.
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Key Terms to Know
Buyer's Agent
A 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.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Math Concepts
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