medium · National Real Estate Exam agency
An agent representing a buyer learns that a proposed highway expansion will significantly increase noise levels at a property the buyer is under contract to purchase.
If the agent does not disclose this to the buyer, what is the most likely consequence for the buyer in a dispute with the seller?
- The buyer may be unable to rescind the contract based on 'lack of knowledge' because the law assumes the buyer already knows what the agent knows.
- The buyer's knowledge is only ever imputed to them if the agent formally recorded the information in the brokerage's central file.
- The buyer is exempt from the doctrine of imputed notice entirely, since the fact involves a future event rather than a present physical defect.
- The buyer can automatically void the sales contract, because the seller failed to disclose a material fact that was already known to the buyer's own agent.
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