medium · National Real Estate Exam
If an agent is aware of a buyer's financial inability to complete a purchase but fails to inform the seller-client, and the seller suffers a loss when the deal collapses, the seller may sue the agent.
What is the primary basis for the seller's claim regarding the information?
- A violation of the duty of accounting for trust funds.
- Breach of the fiduciary duty of disclosure and the resulting failure of notice.
- The doctrine of caveat emptor applied to the agent's relationship with the principal.
- The agent's failure to provide 'honest and fair dealing' to the seller.
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