medium · National Real Estate Exam

Under the concept of 'notice,' how does a court view a material fact that an agent *should* have known through reasonable care and diligence, but did not actually discover?

  1. The knowledge may be imputed to the principal as if the agent had discovered it, due to the agent's duty of reasonable care.
  2. The court will only impute knowledge if the agent is a broker-in-charge rather than a salesperson.
  3. The principal is excused from liability because the agent’s negligence is considered a separate personal matter.
  4. Knowledge is only imputed if the agent has actual, subjective awareness of the fact.

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