3.0 hours Disclosure Is Not A Secret Course Syllabus
3.0 Elective Hours.
When deciding whether or not to disclose certain information a licensee must determine whether it is a material fact to the property or transaction. Some facts are material and some facts are not, but what makes a fact material?
A material fact is one that might affect a client's decision to sell or buy a property. If this defect were known, would the buyer purchase the property anyway? If the answer is yes, the defect is probably not material. If the answer is no, the house would not be purchased if the defect were known, then it is probably a material fact. Would the buyer still pay the same amount of money for it? If the buyer would still pay the same amount for the house, then the defect is probably not material. If the potential buyer would pay less, then it is material.
Obligations to disclose will be different for different clients. If the client is a first-time home buyer, the licensee will probably need to disclose more about the property than normal. On the other hand, if a seasoned property investor is the client, the disclosure obligations will be different.
While an agent's first obligation is to his client, agents must treat all parties with fairness and honesty, even those persons with whom the agent does not have an agency relationship. This course discusses the disclosure obligations a licensee owes to sellers and buyers.